Polymarket · US Congress · White House · CoinDesk
Congress hits Polymarket and Kalshi with a large insider trading probe
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The U.S. House Oversight Committee plans a probe into the largest prediction market platforms over suspicions that government employees could be exploiting classified information for personal gain.
Key facts
- Prediction market volumes could peak to roughly $1 trillion by 2030, as the sector evolves from niche wagering into broad-based “information markets” spanning sports, crypto, politics
- He and his team found 80 bets on Polymarket with a 98% win rate, which he said is statistically impossible to achieve
- In letters sent Friday to Polymarket’s Shayne Coplan and Kalshi’s Tarek Mansour, Comer demanded clarity on how the platforms handle identity verification, enforce geographic restrictions and flag
- The House probe follows a heated U.S. Senate Commerce Committee hearing on Wednesday, where lawmakers from both parties heavily scrutinized prediction market platforms like Kalshi and Crypto.com
Summary
The House Oversight Committee has opened an investigation into major prediction markets Polymarket and Kalshi over concerns that U.S. government employees may be using insider information to profit from policy and national security events. Chair James Comer is seeking internal records from the platforms’ CEOs and has signaled he may pursue legislation to bar members of Congress, administration officials and other government employees from participating in prediction markets. The probe comes amid rapid growth in prediction markets and mounting bipartisan scrutiny in Congress, with lawmakers and experts warning of national security risks, potential insider trading and problem gambling tied to the booming industry. The U.S. James Comer, R-Ky.