The U.S. House of Representatives plans to launch an insider trading investigation into the prediction markets Polymarket and Kalshi

By: rootdata|2026/05/23 20:45:01

According to CoinDesk, the U.S. House Oversight Committee plans to investigate prediction market platforms due to concerns that U.S. government employees may exploit insider information to profit from policy and national security events. James Comer, the chairman of the House Oversight and Government Reform Committee and a Republican congressman from Kentucky, stated on CNBC's "Squawk Box" that he is seeking internal records from the CEOs of Polymarket and Kalshi to determine whether government employees are profiting from insider information related to policy, geopolitical, and military actions, and indicated that he may push for legislation to prohibit members of Congress, government officials, and other government employees from participating in prediction markets.

This investigation comes at a time when prediction markets are rapidly developing, and there is increasing scrutiny from both parties in Congress. Legislators and experts warn that this burgeoning industry poses national security risks, potential insider trading, and gambling issues.

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