The chairman of the House Oversight Committee launched an investigation into possible insider trading on Kalshi and Polymarket, two increasingly popular prediction market platforms.
Republican Rep. James Comer of Kentucky sent letters to each of the companies’ CEOs on Friday requesting documents and information about how they verify the identity of users and flag suspicious activity, such as a trade being made hours before major government actions.
“It’s the Wild West,” Comer told CNBC of the prediction markets on Friday. “There are no rules. You and I may think we know what’s ethical and what’s not, but there’s no written law against it. This is so new and it’s never been a problem until a few months ago.”