TLDRThe prediction market operator Kalshi has established Americans for Fair Markets (AFM), a lobbying organization designed to influence federal policy on prediction markets.Taylor Budowich, who previously served in the Trump administration, has joined the organization as a strategic advisor.AFM’s debut coincided with the House Oversight Committee’s announcement of insider trading investigations targeting Kalshi and competitor Polymarket.The organization frames its mission as countering misinformation from traditional gaming establishments like sportsbooks and casinos.Traditional gaming interests have responded by characterizing prediction markets as disguised sports betting platforms.The federally regulated prediction market operator Kalshi has established a political advocacy organization named Americans for Fair Markets. This new entity seeks to shape how federal policymakers and regulatory agencies approach prediction markets across the country.JUST IN: Prediction market platform Kalshi launched a new advocacy group aimed at pushing back against growing anti-prediction market lobbying efforts in Washington. pic.twitter.com/1bkAjCDqfB— EyeWhales (@EyeWhales) May 25, 2026Taylor Budowich, who held a senior position in President Donald Trump’s White House, has been brought on as the organization’s strategic advisor. Before departing his role in September, Budowich oversaw communications operations for both the White House and a Trump-aligned super PAC.Kalshi provided backing for AFM’s formation, though representatives indicate additional members are involved. While a spokesperson characterized the organization as having substantial financial resources, specific funding details were not disclosed.The organization’s primary objective involves challenging what Kalshi characterizes as misleading claims about prediction markets circulated by established gambling sector players. According to AFM, traditional sportsbooks and casino operators are attempting to safeguard their market positions by portraying prediction markets negatively.“Entrenched interests protecting their monopolies won’t outspend or out-organize us,” stated John Bivona, who serves as Kalshi’s head of government relations and has assumed a position on AFM’s board.Congressional Investigation Announced SimultaneouslyAFM’s unveiling occurred the very same day House Oversight Committee Chairman James Comer revealed investigations into potential insider trading activities at both Kalshi and Polymarket. Comer highlighted questionable wagers placed before military operations involving Venezuela and Iran, incidents that have already resulted in arrests domestically and in Israel.Kalshi has expressed support for Commodity Futures Trading Commission oversight. The CFTC and state authorities have engaged in jurisdictional disputes, with state officials contending that prediction markets breach local gambling regulations.Polymarket maintains a regulated platform for US users while handling the majority of its wagering activity through international channels. Kalshi, in contrast, functions predominantly as a federally supervised exchange.Traditional Gaming Sector RespondsThe American Gaming Association has adopted an aggressive position opposing prediction markets. During congressional testimony this week, Bill Miller, the organization’s president and CEO, characterized these platforms as “deceptively calling sports betting financial contracts and investing.”AFM’s online presence presents a contrasting viewpoint, contending that prohibiting prediction markets would drive them to “unregulated platforms with no identity verification, no consumer protections, no insider trading rules.”AFM becomes part of an expanding lobbying effort that includes the Coalition for Prediction Markets, which emerged in December 2025 with support from Coinbase, Crypto.com, and Robinhood.The organization states it will advocate for platforms implementing consumer safeguards including know-your-customer protocols, insider trading prohibitions, and limitations on markets connected to violence or terrorism.President Trump has expressed conflicting views regarding prediction markets. Last month, he indicated dissatisfaction with these platforms but subsequently moderated his stance, warning the US risked being “left out in the cold” through prohibition. His son, Donald Trump Jr., has made investments in Polymarket and holds positions on both Polymarket’s advisory board and as an advisor to Kalshi.Kalshi’s company valuation recently reached $22 billion, doubling after securing $1 billion in new funding.The post Kalshi Forms Political Advocacy Group Amid Congressional Insider Trading Investigation appeared first on Blockonomi.