House Oversight Committee Chairman James Comer has launched a congressional investigation into potential insider trading practices on prediction market platforms Kalshi and Polymarket.

The probe comes amid growing scrutiny of prediction markets, which allow users to bet on the outcomes of various events including political elections, economic indicators, and other future occurrences. These platforms have gained significant popularity and trading volume in recent years.

Details about the specific scope of the investigation or what prompted the inquiry were not immediately available. The investigation appears to focus on whether individuals with non-public information may have used that knowledge to gain unfair advantages in trading on these platforms.

Both Kalshi and Polymarket operate as prediction markets where users can trade contracts based on the likelihood of future events occurring. Kalshi operates as a regulated derivatives exchange under the Commodity Futures Trading Commission, while Polymarket has faced regulatory challenges in the United States.

The congressional probe adds to broader regulatory scrutiny facing prediction markets as they have grown in prominence and trading activity. Federal regulators have been examining how these platforms operate and whether additional oversight is needed to protect investors and ensure fair trading practices.