Senators John Curtis (R‑Utah) and Adam Schiff (D‑Calif.) wrote to CFTC Chairman Michael Selig demanding a federal probe of prediction‑market platform Polymarket. Their letter, prompted by a Wall Street Journal expose on deceptive social‑media ads that promoted fictitious bets, claims the conduct “does not resemble a sober financial market.”

The senators argue the alleged marketing violates CFTC rules and possibly federal gambling law, and they ask Selig to confirm whether the agency is already investigating. A source familiar with the matter says the CFTC has an ongoing inquiry, though the commission declined to comment publicly.

Regulators dropped a sweeping investigation into Polymarket last year, leaving the platform’s compliance practices under a cloud. Market participants worry that unchecked deceptive ads could attract retail bettors seeking quick returns, blurring the line between legitimate hedging tools and illegal gambling. The letters highlight bipartisan concern over the CFTC’s enforcement capacity.

If the CFTC confirms violations, penalties could reach millions, pressuring other crypto‑based prediction markets to tighten disclosures. Investors should monitor any regulatory outcome, as heightened scrutiny may affect liquidity and user growth on platforms that rely on viral marketing. The bipartisan push signals a likely escalation in federal oversight of digital betting venues.