The investigation will examine how these platforms detect suspicious trading activity and enforce geographic restrictions. Lawmakers are considering legislation to restrict government employees from participating in prediction markets. The House Oversight Committee has launched an investigation into prediction market platforms Polymarket and Kalshi, citing concerns that US government employees could use non-public information to profit from trades. According to CNBC, Committee Chair James Comer has requested internal records from the companies’ CEOs, including details on identity verification, geographic controls, and systems used to detect suspicious trading activity. The committee aims to determine whether individuals with access to sensitive policy or national security information have used these platforms for financial gain. “There’s a concern now that members of Congress, members of the president’s administration, any type of government employee, can use basic insider knowledge and make huge profits on anything government-related,” Comer told the media publication. See Related: Strategy Slashes 2029 Debt With $1.5B Convertible Buyback Lawmakers Focus On Insider Trading Risks The probe could lead to legislative action. Comer said lawmakers are considering restrictions that would prevent members of Congress, administration officials, and other government employees from participating in prediction markets. “We want to not only launch an investigation to see how widespread this has been thus far, but also to prove a case that we’ve got to pass some type of legislation,” he added. The investigation comes as prediction markets expand rapidly. Industry estimates show trading volumes reached $51 billion last year and could rise to about $240 billion in 2026, with longer-term projections pointing to significant further growth. At the same time, the sector faces increasing scrutiny in Washington. During a recent Senate Commerce Committee hearing, lawmakers from both parties raised concerns about risks linked to these platforms. Senator Ted Cruz warned that financial incentives tied to event outcomes could lead to manipulation, while Senator John Hickenlooper criticized marketing practices that may encourage gambling among younger users. The House probe marks the latest step by US lawmakers to assess the risks tied to prediction markets as their influence grows.
