Congress Probes Prediction Markets for Insider Trading

A U.S. congressman is launching an investigation into prediction market platforms Polymarket and Kalshi, citing concerns that government employees might be using insider information to profit from policy and national security events. Representative James Comer is demanding internal records from the companies to assess the extent of potential insider trading and is considering legislation to prohibit government employees and members of Congress from participating in these markets. This probe highlights growing bipartisan scrutiny of prediction markets due to national security risks and potential for illicit gains, with some analyses suggesting significant future market volumes.