The House Oversight Committee has launched an investigation into prediction markets Kalshi and Polymarket over concerns about insider trading.
Committee Chair James Comer told CNBC’s “Squawk Box” on Friday that he sent letters to Polymarket CEO Shayne Coplan and Kalshi CEO Tarek Mansour requesting internal documents on identity verification, geographic restrictions, and anomalous trading detection, with a deadline of June 5.
The probe follows rising scrutiny from lawmakers after several high-profile incidents, including a US soldier allegedly profiting from classified knowledge and congressional candidates betting on their own races.
Comer stated that access to internal company records is necessary to determine whether users are engaging in insider trading and whether the platforms are adequately enforcing legal safeguards.
Comer said that the probe aims to build a case for legislation that would ban government employees and members of Congress from participating in these markets.
