Congress hits Polymarket and Kalshi with a massive insider trading probe
House Oversight Committee opened an investigation into prediction market platforms Polymarket and Kalshi, fearing U.S. government employees may exploit classified information for profit. Rep. James Comer demands internal records and proposes legislation barring Congress members and officials from participating. The probe follows bipartisan scrutiny over national security risks and insider trading concerns as prediction markets surge toward projected $1 trillion volume by 2030.
Key takeaways
- 1House Oversight Committee launched investigation into Polymarket and Kalshi over concerns U.S. government employees exploit classified information for profit.
- 2Rep. James Comer proposes legislation barring Congress members, administration officials, and government employees from participating in prediction markets.
- 3Prediction market volumes could reach $1 trillion by 2030, up from $51 billion in 2025, attracting regulatory scrutiny.
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Why it matters
This probe signals tightening regulatory oversight of crypto-adjacent prediction markets in the U.S., which could impact platform operations and investor access in India. The potential legislation to restrict government employee participation reflects growing national security concerns about information leakage through decentralized markets, setting precedent for global regulatory frameworks affecting Indian retail crypto traders.
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