Polymarket's DC 'situation'

Polymarket’s DC ‘situation’

Polymarket’s play for DC has a rocky start

Prediction market Polymarket wanted Washington, D.C. to be able to “monitor the situation” in a pop-up bar this weekend, but the main attraction became the dozens of nonfunctioning monitors during opening night.

The platform’s “Situation Room” pop-up bar, which took over Proper 21 on K Street for the weekend, had a rocky start Friday night when the event organizers announced the more than 50 monitors set up for the bar would not turn on due to power issues.

The screens stayed black the entire opening night, before the pop-up bar closed early to repair them by Saturday morning.

These monitors were supposed to show screens akin to what an investor might see on a social media timeline — news feeds, maps flight radars and Polymarket screens.

The event marketing began just days earlier and more than 300 people initially responded to the “Partiful,” invite that circulated in social circles last week.

The theme touched upon the “monitoring the situation” internet meme, which jokes about online users watching something unfold through social media without actually being involved. The phrase was taken from more serious posts of public leaders or politicians who used the term to alert their audience they are following a developing situation.

Two attractions did work Friday, including a giant globe showing various Polymarket wagers, and an interactive game for users to guess the odds for relevant questions like “Will federal AI regulation pass Congress in 2026?” The screens were functional by Saturday morning.

Technical issues aside, the pop-up bar underscored the growing presence prediction markets are looking to have in the nation’s capital. Polymarket Chief Legal Officer Neal Kumar called it the company’s “coming out party in D.C.”

“We spent much of our livelihood at Polymarket fighting to stay alive, being super scrappy. We’ve proven that the concept of prediction markets exists, and we’ve proven that the concept is here to stay,” Kumar told reporters ahead of the event. “We want to be a part of the conversations in D.C. And where best to have a conversation than in a bar?”

When asked by The Hill who Polymarket envisioned at this event, Kumar said it hope for “policy nerds,” and “people across the spectrum.”

The event comes as prediction markets, like Kalshi and Polymarket, have exploded in popularity in recent years. However, they also increasingly find themselves at the center of a legal dispute over whether prediction markets are considered gambling and if they have to follow state gambling laws.

This dynamic wasn’t far from mind at Friday’s pop-up bar, where a billboard truck was parked outside with the message, “If it quacks like a duck, it’s probably sports betting.”

“Sports betting on prediction markets looks a lot like sports betting — without the legal protections,” the billboard also read.

A logo in the corner indicated it was put on by Gambling Is Not Investing, a coalition that launched earlier this month and argues that prediction markets are improperly bypassing state laws.

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Senators reach ‘agreement in principle’ on stablecoin dispute

Sens. Angela Alsobrooks (D-Md.) and Thom Tillis (R-N.C.) have reached a “bipartisan agreement in principle” over a dispute that has held up key cryptocurrency legislation for months.

A bill that aims to split up oversight of the crypto market between two financial regulators has been on ice since January amid a fight between the crypto and banking industries over a provision in the GENIUS Act, the stablecoin bill that President Trump signed into law last July.

“This is an important step forward for market structure legislation, a step that both have worked for months to resolve,” Connor Lounsbury, Alsobrooks’ communications director, said in a statement Friday.

The provision at issue barred stablecoin holders from offering interest to users simply for holding onto the digital tokens, which are typically tied to the U.S. dollar.

After the passage of the GENIUS Act, the banking industry began arguing that the provision left open a loophole that allowed third parties to offer rewards to stablecoin holders. They have argued that lawmakers should address the issue in the market structure bill.

The crypto industry, by contrast, has argued that rewards are necessary for stablecoins to be able to effectively compete in the payments space.

Few details have emerged so far about the stablecoin rewards deal, with Lounsbury noting that the senators plan to consult industry stakeholders for feedback.

“Of course, there are still outstanding issues in the wider legislation—including ethics and illicit finance—that still need resolution to secure a broad, bipartisan vote in the Banking Committee,” Lounsbury said.

“In terms of the agreement in principle, the Senators worked hard to find a yield compromise that both protects innovation in this emerging technology as well as protects against the deposit flight concerns raised by many on both sides of the aisle,” he added.

Crypto Corner is a daily feature focused on digital currency and its outlook in Washington.

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