The U.S. House of Representatives plans to launch an insider trading investigation into prediction market firms Polymarket and Kalshi.

According to Huoxun Finance, the U.S. House Oversight Committee plans to investigate prediction market platforms, raising concerns that U.S. government employees may use insider information to profit from policy and national security events. Committee Chairman James Comer, a Republican representative from Kentucky, stated that the committee is reviewing internal records of the CEOs of Polymarket and Kalshi to examine whether government employees used insider information to profit from policy, geopolitical, and military operations. This could potentially push for legislation to prohibit members of Congress and government officials from participating in prediction markets. The prediction market is currently experiencing rapid growth, and both parties in Congress are increasing scrutiny of it, with allegations of national security risks, insider trading, and gambling-related issues.