A group of congressional Democrats on Thursday introduced legislation that would ban prediction market bets on elections, government actions, war and sports, as scrutiny on the popular platforms intensifies.

Sens. Jeff Merkley, D-Ore., and Elizabeth Warren, D-Mass., and Rep. Jamie Raskin, D-Md., are leading the measure, which comes after a series of well-timed bets placed on world events — including the ousting of Venezuelan President Nicolas Maduro and the war in Iran — raised questions about prediction markets like Kalshi and Polymarket.

“When anyone can use prediction markets to make a well-timed bet on Congress passing a bill, government decisions, or a military strike, it’s ripe for corruption and erodes public trust,” Merkley said in a statement. “The STOP Corrupt Bets Act restores the original intent of prediction markets and prevents these markets from further eroding our democratic institutions and turning them into a casino.”

The bill, which would impose broader limitations on the markets than most other legislative measures, is the latest in a flurry of proposals to rein-in prediction markets, which have exploded in popularity of late and allow users to place bets on a variety of events.

Sens. Adam Schiff, D-Calif., and John Curtis, R-Utah, have teamed up on a measure to ban sports prediction market contracts, which they argue is tantamount to gambling and goes virtually unregulated.

Kalshi criticized Schiff and Curtis’ proposal in a statement to CNBC on Wednesday, saying, “It’s clear this bill is motivated by casino interests that are threatened by competition. They’re more worried about protecting their monopolies than protecting consumers.”

A bipartisan House group on Wednesday introduced legislation barring members of Congress, the president and other executive branch officials from trading in certain prediction markets. Merkley earlier this month, along with Sen. Amy Klobuchar, D-Minn., introduced his own proposal that would similarly block elected officials from getting rich off prediction markets.

As lawmakers turn up the heat, Kalshi and Polymarket both announced new insider trading protections on their platforms this week. Kalshi says it does not allow markets related to war or death.

Spokespeople for both prediction markets did not immediately respond to a request for comment Thursday morning.

In addition to an outright prohibition on specific prediction market activity, Merkley, Warren and Raskin’s latest proposal would clarify that these markets are against the intent of federal law that regulates contract trading and would return the power of regulating gambling to the states, according to Merkley.

At least 20 lawsuits have been filed by states and gaming regulators arguing that prediction markets offer a gambling loophole and should be state-regulated.

The new bill would also require that the Government Accountability Office — Congress’ non-partisan, independent watchdog — conduct a study on prediction markets and insider trading.

Disclosure: CNBC and Kalshi have a commercial relationship that includes a CNBC minority investment.

Sen. Elizabeth Warren is demanding answers to economic questions surrounding the Iran war, ticking off a list of queries about the impact on food, energy and retail costs, among other concerns, in a letter sent Friday to administration officials.

The liberal Democratic firebrand from Massachusetts ripped President Donald Trump, whom she said has “dragged the United States into an illegal and reckless war” that will hurt U.S. consumers, particularly in the middle and lower classes.

“I write today with grave concern that President Trump is weakening an already fragile economy, and will continue to do so, pouring billions of dollars into a war that will drive up prices, slow growth, and leave American families with higher costs while they are forced to foot the bill,” Warren said, according to a letter exclusively obtained by CNBC.

Warren is the ranking member on the Senate Banking, Housing and Urban Affairs Committee.

Since the war began three weeks ago, energy costs have soared. The benchmark global oil price is approaching $110 a barrel, with costs at the pump nearing $4 a gallon, or about $1 higher than a month ago, according to AAA.

Official government inflation figures are not available yet for March, but surging energy costs — and pass-through effects — are likely to boost prices at least as long as the fighting continues.

Warren delineated impacts on energy, food and retail prices, and said the war is having a broader impact in terms of economic uncertainty.

“The list of economic consequences goes on and on,” she wrote. “And it does not appear that the Trump Administration has any meaningful plan to keep prices low or prevent Americans from running low on the goods they need to work, go to school, and feed their families.”

Administration officials did not immediately respond to a request for comment.

The letter was addressed specifically to Treasury Secretary Scott Bessent, National Economic Council Director Kevin Hassett, and Pierre Yared, the acting chair of the Council of Economic Advisers.

Warren quizzed the recipients on whether their organizations had done costs analyses on the war’s impact prior to its start or had projections on where they see prices going for the rest of 2026.

Earlier in the week, Federal Reserve Chair Jerome Powell did not directly address the war but said he expected energy prices would rise but wasn’t sure of the longer-term impacts. The Fed voted to hold its benchmark rate steady, in part citing uncertainty over the war.

Sen. Elizabeth Warren on Thursday questioned why the U.S. Transportation Command and the State Department were not doing more to get stranded American citizens out of the Middle East amid the war with Iran.

There may still be tens of thousands of U.S. citizens stuck in the region, and the Trump administration has been too slow to act as violence spilled out of Iran into surrounding countries, the Massachusetts Democrat said at a Senate Armed Services Committee hearing.

“Let’s be clear, the Trump administration chose this war. They planned this war for months, and they made no plans to safeguard hundreds of thousands of Americans in the region. There is no excuse for this,” Warren said.

Americans reported feeling stranded in the region in the days immediately after war broke out. A State Department warning for U.S. citizens to “DEPART NOW” to Americans in 14 countries set off a scramble, with some saying they were left to fend for themselves. Amid the criticism, the State Department said last week they were ramping up flights for American to get out of the region.

While President Donald Trump suggested earlier this week the war would end “very soon,” there is no immediate end in sight, and Americans in the region are trying to contend with an ever-evolving regional conflict.

The State Department has published regular updates on the amount of Americans relocated out of the region since Trump announced the war with Iran on Feb. 28, and on Thursday a spokesperson said nearly 47,000 citizens had returned to the U.S.

The State Department had completed more than two dozen charter flights, and at this point the number of seats offered on those flights outstrips demand, the spokesperson said. 

“While commercial flight availability across the region continues to improve, Department of State charter flight and ground transport operations continue to operate,” the spokesperson said without providing a name, responding to an email sent to the agency’s media inquiries account.

Gen. Randall Reed, commander of TRANSCOM, testified at the Thursday hearing that his command had assisted in the airlift of hundreds of Americans out of the region.

But Warren said the effort has fallen short.

“What I’m trying to understand is why you’re not doing more,” Warren asked Reed. “Because I’m hearing from my constituents who are stranded there, who’ve been stranded there for two weeks and they’re asking for help, and they’re not getting help from the U.S. government.”

While many Americans have left and some are choosing to stay in the region, others are still stuck. The State Department spokesperson said the department was “now working 24/7 to bring Americans home.”

Some lawmakers are taking matters into their own hands.

Rep. Nancy Mace, R-S.C., posted to X about a trip she took this week to the Middle East to help a family from her district that was stuck there.

“The family I traveled here for are safely home. But then I learned about more families. Hundreds of families. Thousands. Still stranded,” Mace wrote.

Congressional caseworkers, the aides who field inquiries from constituents, have similarly reported that Americans are feeling stranded and frustrated with the federal government’s response to the war.

One Senate Democratic caseworker — who spoke on the condition of anonymity because she is not authorized to speak to the press — said she has heard from constituents in places like the United Arab Emirates, Qatar, Israel and Kuwait. Some are tourists, others are students or Americans in the region for work, in some cases with their families. 

“People there that are in the Middle East, just wanting to leave but having absolutely no way to leave, they are scared, they are terrified and they are feeling abandoned,” the caseworker said. “Their families here are scared and terrified and wondering why the U.S. government has not already gotten their loved one home.”

Inconsistent messaging from the government did not help, the Senate caseworker, and a House Democratic caseworker, who also spoke on the condition of anonymity, both said.

In the first days of the war, the guidance to Americans in the region was to shelter in place, the House aide said. But the “DEPART NOW” message on March 2 caused panic. The air space was closed in many countries in the region, making commercial flights an unlikely route home. The government provided a phone number for a help line, but that had a long wait. When they did get through, they were at times told they were on their own, the caseworker said. 

“What we were hearing from constituents was absolute panic,” the House aide said.

Senate Democrats on Tuesday rebutted President Donald Trump’s claims that the war in Iran may soon be over, warning that the U.S. risks getting dragged into another prolonged conflict in the Middle East.

The concerns from Democrats who attended a bipartisan classified briefing with military brass on Tuesday stand in stark contrast with the president, who on Monday suggested the U.S. may be nearing the completion of its operation. Trump’s statements sent slumping markets soaring and cratered oil prices that had skyrocketed in recent days.

The senators were briefed as the Trump administration continues to whipsaw between explanations, goals and timelines for the war that has seen eight U.S. service members killed in action and left the longtime leader of Iran, Ayatollah Ali Khamenei, dead.

“What I heard is not just concerning, it is disturbing,” Sen. Jacky Rosen, D-Nev., a member of the Senate Armed Services Committee, whose members were briefed. “I’m not sure what the endgame is or what their plans are. … And if he does want to put us in a forever war, which it seems like he does, he needs to come out and let us be able to have that discussion.

“Do you think because he thinks he waves some magic wand that everything just stops? … It’s not going to stop just because he wishes it to be so,” Rosen said.

The pessimism from Democrats on an eventual U.S. end for the war it started with Israel against Iran comes as Congress awaits a potential supplemental funding request to finance the offensive. The effort has burned through billions of dollars of U.S. munitions, which will have to be refilled. Some Democrats said they would resist any request for further funding. Democrats have also balked at Trump failing to seek congressional authorization to begin the war.

“At this point, I am a hard no on a supplemental,” said Sen. Elizabeth Warren, D-Mass., the top Democrat on the Senate Banking Committee. “No more money. The one thing Congress has the power to do is to stop actions like this through the power of the purse.”

“This is not a war supported by this country, and this is not a war that makes us safer,” Warren said.

Lawmakers exiting the meeting said the size of the potential supplemental package was not given. Republicans, who hold a 53-47 vote majority in the Senate, appeared willing to support more funding for the war when they left the briefing.

“Not in total dollar amounts that I’ve heard,” said Sen. Jim Banks, R-Ind. “Obviously, there’s a cost to it, but the trade-off is exponentially more, and this has been a very effective operation so far.”

“We need to do whatever it takes to accomplish the mission and do it as fast as we can,” Banks said.

The Washington Post on Monday reported that the military burned through $5.6 billion in munitions in the first two days of the war that began Feb. 28. Washington-based bipartisan think tank the Center for Strategic and International Studies estimates that the war is costing roughly $891 million per day.

Sen. Tim Sheehy, R-Mont., a former Navy Seal, suggested the cost is worth it.

“Iran’s been at war with us for 47 years; we’re trying to end this war,” Sheehy said, referencing the years since the Iranian regime came to power. “We’ve had two presidential administrations give billions of dollars to Iran, that’s what really cost [money].”

Trump and Defense Secretary Pete Hegseth have painted a different picture of the timeline of the war than Democrats say they fear. Hegseth, at a press briefing earlier Tuesday pledged the U.S. will not enter another prolonged conflict in the Middle East, and Trump on Monday said the war would end “very soon.”

War costs are expected to only grow as the war drags on, and Democrats are warning there is no end in sight. The war dragging on could also see markets whip back and oil costs continue to soar, especially as the Strait of Hormuz, which carries roughly 20% of the world’s oil remains largely impassible.

Sen. Tim Kaine, D-Va., said there was “no discussion” about the safety of passing through the Strait during the briefing while he was in attendance.

Sen. Mark Kelly, D-Ariz., a retired Navy captain, also said the U.S. doesn’t appear to be nearing the end of the war after leaving the meeting.

“Clearly, they do not have a strategic goal,” he said. “They didn’t have a plan, they have no timeline. Because of that, they have no exit strategy.”

Correction: This story has been revised to reflect that Sen. Tim Sheehy, R-Mont., is a former Navy SEAL. A previous version misidentified the branch of the military in which he served.

Democratic Sen. Elizabeth Warren is calling President Donald Trump’s bluff after he claimed to be “ending” the affordability crisis during his State of the Union address, opening a new front in the battle that could determine November’s midterm elections.

“Your claims are directly at odds with the day-to-day experiences of American households, who are struggling with rising costs of essentials, including food, housing, health care, child care, and electricity,” Warren, D-Mass., wrote in a letter to Trump, which was shared exclusively with CNBC after being sent late Wednesday. 

“Despite your claims, you have not ‘solved’ affordability or ‘defeated’ inflation. Instead, over the past year, prices have skyrocketed for American households,” Warren, the top Democrat on the Senate Banking Committee, wrote.

Warren’s letter is the launching point for a frontal assault on Trump and congressional Republicans ahead of the 2026 midterms, which could be decided over affordability. Trump’s approval rating on the economy has plummeted as voters express concern about the high cost of living, a contrast with an economy he said was “roaring” during his State of the Union address. 

Now, Democrats are hoping to seize the opportunity to leverage affordability and kick Republicans out of power in Congress. Warren made clear the letter is only her first foray into knocking the president on affordability, as Democrats race around the country selling their economic message before November. 

“Over the coming weeks, I will be writing to Administration officials, companies, and industry representatives directly about your chaotic tariffs and failed economic policies — seeking answers for the American people who are being forced to pay more on everything from groceries to housing,” Warren said.

Warren late Wednesday also sent a letter to Amazon CEO Andy Jassy saying the online retailer was tardy in publicly saying that Trump’s tariffs had contributed to price increases on its platform since their enactment. She also asked Amazon to respond to a series of questions about its future plans on price hikes given Trump’s pledge to find ways tariffs in place. 

Trump has at times suggested he is getting serious about addressing affordability concerns. He’s called for a cap on interest on credit cards, which he did not mention in his speech. He’s also called for a ban on institutional investors from buying homes, which he did mention. Both are also priorities of Warren’s and the progressive left.

But in his State of the Union address, Trump laid blame solely on Democrats for affordability and argued his administration has solved the problem, as polls consistently show increased economic concern from voters. 

“You caused that problem,” the president said. “They knew their statements were a dirty, rotten lie. Their policies created the high prices, our policies are rapidly ending them.”

While overall inflation has cooled significantly from recent highs, the cost of many everyday goods remains high, especially compared to before the Covid-19 pandemic. Electricity prices have skyrocketed amid increased demand from data centers, grocery prices remain high and housing costs have remained inflated. Trump’s tariff agenda has also contributed to lingering high prices. 

Trump doubled down on issuing tariffs through other means during his address, after the Supreme Court knocked down the authority he had been using to implement them. 

The tariffs will “remain in place under fully approved and tested alternative legal statutes,” he said. 

To Warren, that only provided ammunition. 

“Rather than providing relief to consumers, you are pursuing additional across-the-board tariffs through other mechanisms — opening the door to yet another wave of price hike,” she said in her letter. 

Treasury Secretary Scott Bessent on Thursday refused to rule out the possibility of a criminal investigation of Kevin Warsh, President Donald Trump’s nominee for Federal Reserve chair, if Warsh ends up refusing to cut interest rates.

Sen. Elizabeth Warren of Massachusetts, the top Democrat on the Senate Banking, Housing and Urban Affairs Committee, questioned Bessent about a joke Trump made over the weekend about suing Warsh if he does not reduce rates to the president’s liking, according to The Wall Street Journal.

“I think it was a joke, but just in case, this should be an easy one, Mr. Secretary: can you commit right here and now that Trump’s Fed nominee Kevin Warsh will not be sued, will not be investigated by the Department of Justice if he doesn’t cut interest rates exactly the way that Donald Trump wants?” Warren asked. 

“That is up to the president,” Bessent said, as the questioning devolved into cross talk.

U.S. presidents typically leave interest rate decisions up to the Fed, with a metaphorical firewall between the independent board and the White House.

Bessent’s testimony before the Senate committee was his second appearance on Capitol Hill in as many days. On Wednesday, he was grilled by Democrats during a contentious hearing of the House Financial Services Committee. Democrats there pressed Bessent on tariffs and inflation, regulation of cryptocurrencies, and the independence of the Federal Reserve, a hot-button issue.

Trump in recent months has targeted Federal Reserve Chair Jerome Powell over his refusal to lower interest rates to the president’s liking. Powell on Jan. 11 revealed he was the subject of an unprecedented investigation by the Department of Justice relating to cost overruns on the renovation of the Federal Reserve headquarters.

Trump critics have characterized the investigation, which is based in part on testimony Powell gave to the Senate banking committee last year, as a thinly veiled attempt to strong arm the independent central bank.

Committee Chair Tim Scott, R-S.C., said this week he does not believe Powell committed a crime in his testimony. And Sen. Thom Tillis, R-N.C., a member of the committee, has vowed to block the nomination of Warsh, unless the probe into Powell is dropped. Powell’s term as chairman ends in May. Trump, meanwhile, doubled down on the investigation earlier this week.

Warren and her Democratic colleagues on the committee have also called on Scott to hold up Warsh’s nomination until the probes into Powell and Federal Reserve Board Governor Lisa Cook — who is being investigated for alleged mortgage fraud — are ended.

“Donald Trump has been trying to take over the Fed for months and months now,” Warren said before Thursday’s hearing. “He’s threatened to fire Jerome Powell. He started a bogus criminal investigation against him. He started a bogus investigation trying to fire Lisa Cook, and now he wants to appoint his man who’s going to do exactly what he says at the Fed.”

“That’s a takeover,” Warren continued.