{"id":24,"date":"2026-05-24T14:11:48","date_gmt":"2026-05-24T14:11:48","guid":{"rendered":"https:\/\/americanindustryreview.com\/?p=24"},"modified":"2026-05-24T14:11:48","modified_gmt":"2026-05-24T14:11:48","slug":"prediction-markets-put-under-spotlight-by-house-oversight-panel","status":"publish","type":"post","link":"https:\/\/americanindustryreview.com\/?p=24","title":{"rendered":"Prediction markets put under spotlight by House Oversight panel"},"content":{"rendered":"
\n

Prediction markets are under new scrutiny from Congress as lawmakers mull a ban on members betting on the platforms.<\/p>\n

Read more Tulsi Gabbard out as DNI but Trump doesn\u2019t tee up a confirmation fight<\/a><\/p>\n

The House Oversight and Government Reform Committee officially launched an investigation Friday into insider trading on the platforms, spurred by suspicious bets on the capture of Venezuelan President Nicol\u00e1s Maduro and the war in Iran.<\/p>\n

Committee Chairman James R. Comer, R-Ky., sent letters to Kalshi and Polymarket requesting information on how the companies verify users\u2019 identities, their geographic restriction policies, procedures related to suspicious trades and records of specific trades related to Venezuela and the war in Iran. The letters come after Comer indicated in an interview on Fox Business last week that the committee would begin an investigation.<\/p>\n

In an interview with CNBC on Friday, Comer signaled his support for banning people within Congress and the government from trading on prediction markets. He\u2019d previously seemed open to the idea but unsure of current law.<\/p>\n

\u201cWe want to not only launch the investigation to see how widespread this has been thus far, but also to prove a case that we\u2019ve got to pass some type of legislation,\u201d Comer said. \u201cAnd I think it wouldn\u2019t be too much to ask, to say members of Congress can\u2019t participate in the predictions market, nor can government employees or people in the president\u2019s administration.\u201d<\/p>\n

He indicated that the law might need to go further to preclude those with insider knowledge from tipping off others to trade.<\/p>\n

Comer also said current law isn\u2019t clear enough on boundaries for government officials or others with insider information.<\/p>\n

\u201cThere are no rules. You and I may think we know what\u2019s ethical and what\u2019s not, but there\u2019s not written law. This is so new, and this has never been a problem until a few months ago,\u201d he said.<\/p>\n

The letters said the records would help the committee better understand what safeguards companies have in place and \u201cunintended structural conditions\u201d that can be exploited.<\/p>\n

\u201cInternal records held by prediction market platforms are the only means by which bad actors can be identified and to determine whether platforms are meeting their legal obligations,\u201d the letters said.<\/p>\n

Earlier this month, seven House Democrats, led by Rep. Chris Pappas of New Hampshire, wrote to Comer urging him to issue \u201csubpoenas and open an investigation into apparent corruption and insider trading occurring in online prediction markets.\u201d That letter specifically referenced suspicious trades related to U.S. and Israeli military action in Iran.<\/p>\n

Kalshi\u2019s head of communications, Elisabeth Diana, responded to the inquiry in a statement on Friday.<\/p>\n

Read more Trump says Iran deal announcement coming \u2018shortly\u2019<\/a><\/p>\n

\u201cAs a US-regulated exchange we are proud of our comprehensive protections against insider trading. We look forward to engaging with the Committee and its members about the systems and processes that we have spent years building,\u201d Diana said.<\/p>\n

Polymarket indicated the platform will engage with the committee inquiry.<\/p>\n

\u201cPolymarket maintains a comprehensive market integrity framework. We look forward to engaging with Chairman Comer and the committee on how our platform is a pioneer in transparency,\u201d the company said in a statement.<\/p>\n

Legislation<\/h2>\n

If the House were to pass a ban, Comer\u2019s committee would likely have a role to play.<\/p>\n

A resolution that would ban House members and employees from trading on prediction markets was referred to the committee, along with the Judiciary and Ethics panels. Another resolution would amend the House rules to put in place a similar ban.<\/p>\n

A bill that would ban trades by members of Congress, their dependent children, employees of Congress, the president, vice president, political appointees and executive branch or judiciary employees was also referred to the oversight panel, along with the Judiciary and Administration committees.<\/p>\n

Other bills are aimed at banning insider trading in specific industries or areas of the government, including the intelligence community and political campaigns.<\/p>\n

In April, the Senate adopted its own rule barring members and staff from trading on the markets. While the House has yet to act, some members are drawing up their own restrictions.<\/p>\n

[Related: Will the House ban staff from prediction markets? These members aren\u2019t waiting<\/em>]<\/strong><\/p>\n

Comer\u2019s probe comes after the Senate Commerce Subcommittee on Consumer Protection, Technology and Data Privacy held a hearing Wednesday with representatives of the sports betting and prediction market industries. Members of that panel on both sides of the aisle seemed skeptical of arguments that sports-related \u201cevent contracts\u201d are investments rather than gambling.<\/p>\n

At that hearing, the panel\u2019s ranking member, Sen. John Hickenlooper, D-Colo., urged support for a bill he co-sponsored that would ban prediction market bets on acts of terrorism, assassinations, wars, government actions or actions a person can control or know the outcome of in advance.<\/p>\n

FiscalNote, the parent company of CQ and Roll Call, has announced a product expansion into political prediction markets.<\/p>\n

Read more Tulsi Gabbard out as DNI but Trump doesn\u2019t tee up a confirmation fight<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Prediction markets are under new scrutiny from Congress as lawmakers mull a ban on members betting on the platforms. The House Oversight and Government Reform Committee officially launched an investigation Friday into insider trading on the platforms, spurred by suspicious bets on the capture of Venezuelan President Nicol\u00e1s Maduro and the war in Iran. Committee […]<\/p>\n","protected":false},"author":1,"featured_media":23,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-24","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-policy"],"yoast_head":"\nPrediction markets put under spotlight by House Oversight panel - American Industry Review<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/americanindustryreview.com\/?p=24\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Prediction markets put under spotlight by House Oversight panel - American Industry Review\" \/>\n<meta property=\"og:description\" content=\"Prediction markets are under new scrutiny from Congress as lawmakers mull a ban on members betting on the platforms. The House Oversight and Government Reform Committee officially launched an investigation Friday into insider trading on the platforms, spurred by suspicious bets on the capture of Venezuelan President Nicol\u00e1s Maduro and the war in Iran. 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