Washington increases regulatory scrutiny of prediction markets like Polymarket and Kalshi

Congressional members from both parties are pushing for greater regulation of prediction markets after controversial betting on military rescue operations and suspected insider trading. The debate was sparked when Rep. Seth Moulton criticized Polymarket for allowing bets on when a downed airman would be rescued, calling it war profiteering. The Associated Press reported on suspicious well-timed trades that generated hundreds of thousands in profits.