Prediction markets like Polymarket and Kalshi are quickly becoming an economic and political force, accruing multi-billion dollar valuations and drawing support from key officials in the Trump administration.
But backlash to the platforms is spreading — in Washington and in state capitals — with accusations of insider trading following White House military action in Venezuela and Iran and dogging several midterm election campaigns.
Fault lines over who is in charge of regulation are already emerging, with several frontline Democrats pushing to rein in the companies. In March, California Gov. Gavin Newsom signed an executive order barring appointed state officials from
