House Oversight Committee Launches Probe into Polymarket and Kalshi Over Insider Trading

Comer stated that the committee was “examining the adequacy of company safeguards to prevent access to offshore sites to circumvent compliance with applicable U.S. federal regulations governing prediction market platforms.”

The probe follows a series of reports linking over 80 Polymarket users to insider trading after “suspiciously timed bets” before military actions were taken against Iran, and Kyle Langfords $200 wager on his own California race using Kalshi.

During a recent interview on CNBC, Comer stressed the need for regulations in the prediction market space, calling it the “Wild West.”

“It‘s the wild west. There are no rules there. You know, you and I may think we know what’s ethical and what‘s not, but there’s no written law against it,” he declared.

Comer also pointed out the insider trading situation involving Gannon Ken Van Dyke, a U.S. soldier who participated in the operation against Venezuelas Nicolas Maduro and profited over $400K from his personal bets on Polymarket, as a wake-up call.

“There‘s a concern now that members of Congress, members of the president’s administration, or any type of government employee could use basic insider knowledge and make huge profits on anything government-related,” Comer declared, stressing that this upcoming probe might be used to prove the case for legislation to rein in this activity.

The investigation puts prediction platforms under pressure from Congress, as they also face increased opposition from state regulators who seek to classify them as gambling proxies.