Woofun AI reports that US Senators John Curtis and Adam Schiff have formally requested the Commodity Futures Trading Commission to investigate prediction market platform Polymarket for deceptive marketing practices. The lawmakers directed their inquiry to CFTC Chair Mike Selig, alleging the platform utilized undisclosed influencer payments to promote gambling-style products to American audiences.

The legislative pressure stems from a June 20 report by The Wall Street Journal detailing how Polymarket compensated creators to film fabricated trades on interfaces mimicking the actual platform. An analysis of over 1,100 videos by the publication revealed that 70% contained fake bets aggregating nearly $2 million, with the majority of creators failing to disclose their financial compensation.

In response to the allegations, a Polymarket spokesperson confirmed the company is executing a comprehensive audit of all active promotional content to verify adherence to regulatory disclosure standards.

Concurrently, reports indicate the CFTC is already engaged in an extensive investigation into the platform, although the specific commencement date for this probe remains undisclosed.

Senators Curtis and Schiff challenged the regulatory framework, arguing that marketing prediction contracts as 'free money' renders them functionally identical to gambling. They contended these instruments lack hedging value and serve no public interest, urging the agency to enforce existing laws despite the CFTC's history of suing nine US states that attempted to ban such platforms under unlicensed sports betting statutes.

Per Woofun AI, the senators have set a July 10 deadline for Chair Selig to provide written responses regarding the investigation status, the legality of the advertising campaigns, and the agency's available resources. This demand highlights a growing friction between federal regulators and state-level attempts to restrict access to prediction markets.