House Oversight and Government Reform Committee Chairman James Comer sent letters on Friday to the chief executives of Kalshi and Polymarket as part of a congressional inquiry into insider trading safeguards at the two largest prediction market platforms.
The letters request documents detailing how each platform verifies user identities, enforces geographic restrictions, and detects anomalous trading activity, CNBC first reported.
Comer announced the investigation on CNBC's "Squawk Box," citing trades tied to elections and U.S. military action in Venezuela and Iran.
He told the network he wants to determine how widespread insider trading has been and build the case for legislation that would bar members of Congress, administration officials, and government employees from trading on prediction markets altogether.
Both Polymarket CEO Shayne Coplan and Kalshi CEO Tarek Mansour have been asked to produce the requested documents and communications by June 5.
