The U.S. House Oversight Committee is investigating insider trading allegations involving Kalshi and Polymarket platforms.

According to a CNBC report, James Comer, chairman of the House Oversight and Government Reform Committee, has launched an investigation into prediction market platforms Kalshi and Polymarket, demanding that the two companies explain their measures to prevent insider trading, including identity verification, enforcement of geographic restrictions, and mechanisms for monitoring unusual transactions. Comer stated that internal records of these platforms are crucial for identifying improper traders and determining whether a platform is fulfilling its legal obligations. Previously, Polymarket was exposed for suspicious trading related to US actions against Iran and Venezuela; Kalshi also suspended the accounts of three congressional candidates who had bet on their own elections on the platform. Comer has requested that both companies submit relevant documents by June 5th.