House Oversight Committee Chair James Comer has opened formal investigations into prediction market platforms Kalshi and Polymarket, citing concerns that government insiders may be exploiting non-public information to profit on election and geopolitical event contracts. The probe was reported by CNBC.
Comer's committee has requested documentation on identity verification procedures, geographic restrictions, and suspicious trade detection mechanisms — with a deadline of June 5. The core concern: that officials with advance knowledge of policy decisions, diplomatic developments, or election outcomes could place winning bets before the information becomes public.
The scrutiny lands at a sensitive moment for both platforms, which have been aggressively expanding into regulated US markets. A formal congressional investigation — separate from any CFTC or DOJ action — raises the compliance…
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