Top Republican pumps brakes on prediction markets regulation
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House Financial Services Committee Chairman French Hill, R-Ark., poured cold water on Congress’ recent move to regulate prediction markets.
In an interview Wednesday at Semaphore’s Banking Future Forum, Hill said his committee is focused on educating its members about the current rules around prediction markets like Kalshi and Polymarket because many lawmakers lack a “basic understanding” of the current roles played by the Commodity Futures Trading Commission and the Securities and Exchange Commission.
“It’s kind of hard to pass legislation and stand out in policymaking when you have members who don’t have a basic understanding of existing law,” Hill told Semaphore’s Eleanor Mueller.
Hill said he wants to make room for court disputes to be resolved between states and the Trump administration, adding that he believes CFTC and SEC leaders “have the primary responsibility to demonstrate that they can properly police these markets in accordance with the law.”
The Arkansas Republican argued that was a better approach to “coming to a conclusion in Congress about what we should or shouldn’t be doing.”
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Wednesday marked a pivotal moment for Hill and other proponents of the White House-backed bipartisan bill designed to tackle housing affordability. The House was scheduled to vote on the package Wednesday afternoon.
Hill said he couldn’t say what would happen when the updated bill reaches the Senate, but Senate Banking Committee Chairman Tim Scott called RS.C. “a good friend” and said their goal is to deliver “a housing package that the president can sign into law.”
Hill also said both chambers are working to iron out differences on key cryptocurrency legislation, but it’s too early to tell what changes the House should see from the Senate version of the market structure bill.
The legislation is “moving in the right direction,” he said, “but it’s not over until it’s done.”
Hill said he will hold Financial Services Committee hearings this week on legislation that would mimic an executive order signed by President Donald Trump that would expand fintech firms’ access to the Federal Reserve’s payment rails.
