Congress launches major insider trading probe into Polymarket and Kalshi!

The U.S. House Oversight Committee has opened a formal investigation into prediction market giants Polymarket and Kalshi, with Chair Rep. James Comer demanding internal records from both CEOs. The probe centres on whether government employees — including members of Congress and White House administration officials — are exploiting classified or non-public information to profit from policy, geopolitical, and military event contracts.

Comer told CNBC's Squawk Box that the investigation would run in parallel with a push for legislation barring government employees from participating in prediction markets entirely. The letters sent Friday to Polymarket's Shayne Coplan and Kalshi's Tarek Mansour demand clarity on identity verification, geographic restrictions, and anomalous trading detection.