TheBlock
Democratic Sens. Elizabeth Warren and Jeff Merkley are demanding answers from the White House over allegations that a presidential aide used advance knowledge of Donald Trump's speeches to place prediction-market bets. In August, the Commodity Futures Trading Commission ordered teleprompter operator Gabriel Perez to pay more than $172,000 over alleged bets on Kalshi mention markets.
The CFTC alleged that Perez read Trump's prepared remarks shortly before delivery and bet on which words the president would use. In a letter to White House Counsel Will Scharf, the senators said the administration had failed to take meaningful action to address the ethics concerns.
Why it matters
Warren and Merkley asked whether other employees had used insider knowledge for personal gain and whether training on nonpublic information was available. They urged the White House to go beyond a warning memo and consider measures including mandatory training.
The case is among several involving alleged use of inside information on prediction markets, including a separate case involving an active-duty U.S. Army soldier and bets on Polymarket ahead of former Venezuelan President Nicolás Maduro's capture.
Market impact
The senators' inquiry adds to scrutiny of prediction-market integrity and oversight. Warren has said she will seek to address what she calls a lack of oversight as she prepares to lead the Senate Banking Committee.
Separately, Democratic Rep. Ro Khanna called for a ban on sports prediction markets. The White House did not immediately respond to a request for comment.
Frequently asked questions
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What were the Kalshi contracts tied to in the CFTC case?
They were mention-market contracts that predict specific words a public figure will use. The CFTC alleged Perez bet after reading Trump's prepared remarks shortly before delivery.
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How much did the CFTC order Gabriel Perez to pay?
The CFTC ordered Perez to pay more than $172,000 in August.
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What information are the senators seeking from the White House?
They asked whether other employees had used insider knowledge for personal gain and whether training on nonpublic information was available.
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What additional safeguards did Warren and Merkley urge?
The senators said the White House should go beyond a warning memo and consider measures including mandatory training.
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What role will Warren have in prediction-market oversight?
Warren is set to lead the Senate Banking Committee and has said she will seek to address what she calls a lack of oversight in prediction markets.
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