Senators Schiff and Curtis introduce a bill to block sports contracts on prediction markets Kalshi and Polymarket, citing gambling and consumer risks.
U.S. Senators Adam Schiff and John Curtis plan to introduce a bipartisan bill. It would stop CFTC-regulated platforms from offering contracts tied to sports events. According to WSJ, Schiff said these markets are a “backdoor” around state consumer protections and gambling rules. Lawmakers said the bill will make online trading safer for all Americans.
Senators Seek to Strengthen Consumer and State Protections
The bill also goes after casino-style offerings, such as slots, blackjack, poker, and bingo-style markets. Schiff explained that currently, the CFTC is allowing these markets to grow rapidly. He stressed how Congress must act to protect consumers and tribal sovereignty.
The legislation would also prohibit the processing of payments to banned markets. This change could save the country from unlicensed gambling operations. Lawmakers said it makes online financial trading safer.
Related Reading: Nevada Judge Blocks Prediction Market Kalshi for 14 Days | Live Bitcoin News
State-level legal actions are already taking place to quell risky markets. One judge issued a 14-day restraining order in Nevada on March 20, 2026. It prohibits Kalshi from providing sports, election or entertainment contracts without a license.
In Arizona, state prosecutors brought a criminal case against Kalshi’s parent companies with 20 counts. They claim that the companies are running unlicensed gambling by taking bets on sports and the 2026 local elections. Meanwhile, New York lawmakers proposed a bill that banned trading on sports and political predictions.
The CFTC has attempted to prevent insider trading and fraud from taking place on these platforms. But Schiff and Curtis criticized the agency for permitting fast expansion without stronger rules. Kalshi says it is a regulated financial exchange and conforms to federal standards.
Prediction Markets Could Face Stricter Rules Soon
State courts and lawmakers disagree, though, labeling these platforms as unlicensed gambling entities. This war has brought uncertainty to users, investors and companies around the country. Lawmakers say closing these “backdoor” markets is to assure safety and maintain the public trust.
Platforms that provide sports, elections or entertainment contracts are allowed to circumvent state laws if they are not regulated. The purpose of the bill is to establish uniform rules throughout the U.S. It could alter the way that Kalshi, Polymarket and other similarly functioning platforms function legally.
Lawmakers said public revenue is at stake when unlicensed gambling takes place on the Internet. Schiff emphasized the need to respect tribal sovereignty as well. Congress is hoping the bill will ensure state rules are followed and consumers are protected.
This initiative shows an increasing focus on online gambling and trading electronically. By going after Kalshi and Polymarket, the bill aims to help consumers while maintaining legal standards. If passed, platforms may have to make changes in order to conform to federal and state regulations.
Lawmakers hope these changes ensure that the public trust is preserved and illegal activity does not occur. The bill also indicates an increase in oversight of financial/prediction markets across the country. Experts say the law could be precedent-setting for the regulation of future online trading platforms.
