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Prediction Markets Surge as Washington Moves to Rein Them In

A high-profile Maduro bet during a week of record trading sharpened calls for CFTC scrutiny, prompting proposals for new guardrails.

Overview

  • Piper Sandler reports nearly $4 billion in volume on Polymarket and Kalshi for Jan. 13–19, including a record $799 million day, with January on pace for $16.4 billion.
  • An anonymous Polymarket account that turned roughly $32,000 into more than $400,000 on Nicolás Maduro’s removal intensified concerns about insider trading.
  • A group of senators requested a CFTC probe into the Venezuela trades, and Rep. Ritchie Torres introduced a bill to bar government personnel from using material nonpublic information on prediction markets.
  • Polymarket and Kalshi are blocked on the White House Press WiFi and restricted on the House of Representatives’ network, reflecting tightening institutional controls.
  • The industry is escalating lobbying with a new Coalition for Prediction Markets led by former Rep. Sean Patrick Maloney, as major gaming trade groups urge Congress to ban certain sports-event contracts.