House Oversight Committee Investigates Kalshi and Polymarket Trading Controls

The House Oversight Committee has launched an investigation into two major prediction market platforms, Kalshi and Polymarket, over concerns about insider trading and the platforms' ability to prevent it. Committee Chairman James Comer announced the inquiry, stating that letters were sent to the chief executives of both companies requesting detailed internal documents.

The committee is seeking information on how the platforms verify user identities, enforce geographic restrictions, and detect anomalous or suspicious trading activity. The companies have been directed to provide the requested materials and communications by June 5. Comer stated that the investigation aims to determine whether individuals, particularly government employees with access to nonpublic information, are using the platforms for personal profit and whether the companies are meeting their legal obligations to prevent such activity.

This congressional scrutiny follows several high-profile incidents that have raised alarms. A U.S. soldier was arrested in April for allegedly using classified intelligence to profit roughly $400,000 from bets on Polymarket. Separately, an investigation found that more than 80...