U.S. House Committee Launches Investigation into Kalshi, Polymarket Insider Trading Safeguards; Files Due June 5

According to CNBC, U.S. House Oversight and Government Reform Committee Chairman James Comer launched an investigation into prediction market platforms Kalshi and Polymarket, demanding both companies explain their measures to prevent insider trading, including identity verification, geographic restrictions enforcement, and suspicious transaction monitoring mechanisms by June 5.

Comer stated that internal platform records are critical for identifying improper traders and determining whether platforms fulfill legal obligations. Polymarket previously faced scrutiny over suspicious trades related to U.S. actions toward Iran and Venezuela; Kalshi suspended accounts of three congressional candidates who placed bets on their own election outcomes.