Warren Presses the White House on Prediction Market Insider Trading Before She Takes the Banking Gavel

Sens. Elizabeth Warren and Jeff Merkley have sent White House lawyer Will Scharf a letter asking what steps are in place to stop another staffer from profiting on advance knowledge of what President Trump will say. The case that sparked it involved the man who ran the president’s teleprompter, who placed prediction market wagers on those very words. The CFTC went after him, and he and Kalshi ended up paying more than $170,000 and accepting a three year trading ban. The senators say the episode should have been a wake up call, yet they argue the White House took no meaningful action beyond circulating a warning memo.

Warren’s Growing Oversight Role

Warren is expected to lead the Senate Banking Committee in January, which gives her real power to investigate. She has long scrutinized prediction markets, crypto and the president’s links to both. The letter describes a culture of corruption and greed inside the White House and points to the Trump family’s deepening ties to the industry, especially Donald Trump Jr.’s advisory work and business connections.

Wider Democratic Push on Prediction Markets

Sen. Catherine Cortez Masto raised similar worries on Monday, and Rep. Ro Khanna called on Tuesday for a full ban on sports related prediction markets. With Democrats preparing to take over both chambers, letters like this hint at the topics they plan to pursue next.