US Senators Ask CFTC to Investigate Polymarket’s ‘Deceptive’ Marketing

A bipartisan group of U.S. senators has urged the Commodity Futures Trading Commission (CFTC) to investigate Polymarket after a report alleged the prediction market platform paid social media influencers to promote fake bets without clear disclosure. The move raises fresh questions about how regulators should treat event-based prediction products as prediction markets continue to expand their footprint with mainstream audiences.

In a letter sent to CFTC Chair Mike Selig on Thursday, Republican Senator John Curtis and Democratic Senator Adam Schiff said they were concerned Polymarket “used deceptive marketing tactics to promote gambling-style products to US audiences,” according to their press release. The lawmakers called the allegations “deeply troubling” and asked for immediate scrutiny if the claims prove accurate.

Key takeaways

• Senators John Curtis and Adam Schiff have asked the CFTC to investigate Polymarket over allegations of deceptive influencer advertising tied to fake bets.
• The concerns follow a Wall Street Journal report that reviewed more than 1,100 promotional videos and found that 70% included fake bets totaling nearly $2 million.
• Reports also say the CFTC has an ongoing investigation into Polymarket, though the timeline has not been disclosed publicly.
• Polymarket said it is auditing promotional content to ensure compliance with regulatory and disclosure requirements.
• The lawmakers argue the CFTC’s approach may not adequately address the realities of how prediction markets are marketed as gambling-like products.

Senators press for CFTC scrutiny over alleged deceptive promotions

Curtis and Schiff’s letter centers on claims that Polymarket engaged social media creators to film “fake trades” on websites styled to resemble the platform, and that many creators did not disclose they were paid for the promotional work. According to the Wall Street Journal’s June 20 reporting, the publication reviewed more than 1,100 videos and found that 70% showcased fake bets amounting to nearly $2 million.

The senators framed the issue not just as a marketing dispute, but as a regulatory concern tied to consumer protection and the distinction between lawful event-contract trading and gambling-like activity. They said the CFTC has repeatedly asserted authority over prediction markets and event contracts, but argued that current enforcement and oversight appear insufficient given how content creators portray the space.

“If accurate, these allegations are deeply troubling and demand immediate scrutiny from the Commodity Futures Trading Commission,” Curtis and Schiff wrote, according to the letter described in their press release.

Wall Street Journal report and timing of CFTC inquiry claims

The senators’ intervention follows the Wall Street Journal’s report, which described extensive influencer marketing tied to content that allegedly did not reflect genuine bets on Polymarket itself. The Journal’s review suggested a large proportion of promotional videos were not merely illustrative but involved falsified trading scenarios.

Shortly after that reporting, additional coverage indicated the CFTC was already looking into Polymarket. Earlier this week, CNBC reported—citing a person familiar with the inquiry—that the CFTC is conducting an “ongoing and extensive” investigation. CNBC also said the timeline for when the inquiry began was not shared.

Polymarket did not comment on the senators’ letter or on the reported investigation. In a statement provided earlier this week to Cointelegraph, a Polymarket spokesperson said the company was “conducting a comprehensive audit of active promotional content” to ensure it meets its “standards,” as well as applicable regulatory and legal disclosure requirements.

Why the dispute matters: enforcement, disclosure, and the gambling analogy

In their letter, Curtis and Schiff argued that regulators may be missing the practical implications of how prediction markets are presented to U.S. users. They referenced the recurring framing by creators of prediction products as “free money,” and they questioned whether that marketing environment supports treating prediction markets as something fundamentally different from gambling.

The senators warned that if prediction markets are being marketed with consumer behavior in mind similar to gambling-style betting, then the legal and regulatory approach may need closer scrutiny—especially regarding advertising practices and disclosures.

The lawmakers also asserted that they remain concerned the CFTC is neither enforcing the law appropriately nor equipped to act as a federal gambling regulator. They did not claim that all prediction markets should be regulated as gambling, but their argument emphasized that the real-world presentation and consumer messaging could undermine the distinction regulators often rely on.

Questions to CFTC by July 10 and what investors should watch

Beyond asking for scrutiny, Curtis and Schiff requested written responses from CFTC Chair Mike Selig by July 10. Their list of questions included whether the agency is investigating Polymarket, whether the reported advertising practices were legal, and whether the CFTC has adequate resources to police prediction market promotions and related conduct.

The letter also reflects the broader regulatory tension around prediction markets. The CFTC has claimed authority under federal commodities law, in part because platforms register with the agency and operate through structures the commission views as falling under its jurisdiction for commodities-related event contracts.

At the same time, the CFTC’s enforcement actions against state-level challenges show how complex the governance question remains. According to earlier reporting, the regulator has sued nine U.S. states that filed legal action against prediction market operators—alleging the platforms were effectively offering unlicensed sports betting through event contracts.

For traders, users, and companies operating in the prediction market ecosystem, the immediate uncertainty is what the CFTC will determine about promotional practices and disclosure compliance. The next developments to watch are any formal regulatory findings, changes to influencer marketing requirements, and clarifications on how the agency evaluates whether promotional content crosses lines between lawful trading representations and gambling-style inducements.

With both a congressional escalation and reports of an active CFTC inquiry, the key question now is whether the regulator will treat the alleged influencer advertising as a disclosure and consumer-protection issue, a jurisdictional matter, or both—and what that means for how prediction markets market their products going forward.