Warren and Merkley press White House counsel over staff prediction market bets
Two Democratic senators asked White House counsel Will Scharf to explain by November 23 what he has done since a teleprompter operator's Kalshi bets.
Senators Elizabeth Warren and Jeff Merkley have asked White House Counsel Will Scharf to explain what his office has done to stop staff from betting on prediction markets with inside information. Their letter, dated November 9, 2026, asks for answers by November 23.
The letter centers on Gabriel Perez, President Trump’s longtime teleprompter operator, who was reported in July to have bet on Kalshi about which words the president would say in upcoming speeches. Kalshi investigated and referred the matter to the CFTC. On August 28 the agency settled charges that he traded presidential mention market contracts between December 2025 and February 2026 using speeches he saw in advance. He agreed to disgorge $107,539 in profits, pay a $65,000 penalty and accept a three-year trading ban. He no longer works for the federal government.
What the senators want to know
The senators ask seven sets of questions. They want to know whether any other White House employees used nonpublic information to place bets or trades, and what training staff receive on misusing that information or on trading in financial or prediction markets. They also ask how the White House investigation into Perez ended, whether he was fired, and whether anyone at the White House spoke with the CFTC or the Justice Department about him.
They also ask about a memo, reported in July, warning staff not to use nonpublic government information to bet on Kalshi or Polymarket. They ask whether his office sent it, when, who received it and whether staff acknowledged it, and they request a copy. A final question asks whether Scharf would recommend clemency if Perez faced criminal liability.
The argument behind the letter
The senators argue the White House has taken “no meaningful action” since the case, and that the memo is “the only publicly known action” on staff use of prediction markets. They also point to the Trump family’s ties to the industry, including Donald Trump Jr.’s advisory roles at Polymarket and Kalshi.
Why it matters for the market
Mention markets, which pay out on whether the president uses certain words, are where Perez traded. The letter makes no demands of Kalshi or Polymarket; its questions are about White House ethics rules. CoinDesk reports that Warren is expected to chair the Senate Banking Committee in January, where she would be in a position to steer the panel’s oversight.
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