Senate Commerce Committee grills prediction market platforms over cheating, youth ads, and regulatory turf war!

Prediction market platforms including Kalshi and Crypto.com faced two hours of bipartisan criticism at a U.S. Senate Commerce Committee hearing Wednesday, with lawmakers zeroing in on athlete cheating scandals, aggressive social media advertising to minors, and the sector's growing encroachment on state- and tribal-regulated gambling revenues. Committee chair Senator Ted Cruz cited NBA, MLB, MLS, and UFC match-fixing incidents as evidence the industry is corroding sporting integrity, while Senator John Hickenlooper accused the platforms of unleashing the "hounds of hell" in marketing that preys on young users.

The regulatory fault line is sharpening fast. The CFTC — currently operating with a single commissioner instead of its full five-member bench — is simultaneously defending prediction markets in federal court against state bans in Minnesota, Arizona, Connecticut, Illinois, and New…