US House Probes Kalshi and Polymarket Over Insider Trading Allegations

Key Facts

In a move reflecting heightened legislative scrutiny over alternative finance, House Oversight Chairman James Comer has launched a formal probe into potential insider trading on prediction platforms Kalshi and Polymarket. According to reports, Comer has demanded internal documents from both firms to assess whether non-public information was used to gain unfair market advantages. The investigation aims to safeguard market integrity within the rapidly expanding prediction market sector.

This congressional action arrives at a critical juncture for political and economic betting hubs, as Polymarket previously faced regulatory pressure from the CFTC resulting in a $1.4 million settlement in 2022, according to Bloomberg reports. While Kalshi operates as a regulated entity within the U.S., Polymarket’s decentralized nature adds a layer of complexity to the probe, highlighting an ongoing jurisdictional debate over blockchain-based prediction markets.

Traders should monitor the platforms' compliance with congressional demands, as findings could catalyze stricter federal oversight or operational restrictions. Looking ahead, broader market sentiment may be influenced by upcoming data such as the UK Unemployment Rate on May 19, 2026, which serves as a key indicator for global risk appetite in tech-adjacent financial sectors.

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