House probe flags ‘potential insider trading’ on prediction markets

The panel reviewed five platforms but named only Polymarket & Kalshi for beefing up surveillance tools.

The hit

The House Oversight Committee says government officials, military personnel & people with security clearances have used non-public information to trade on prediction markets for profit. The claim comes in a staff memorandum released after a probe that gathered nearly 1,700 pages of documents & five bipartisan platform briefings.

Why it matters

The committee’s memo urges Congress to weigh outright trading bans or restrictions on government-linked contracts for officials & staff. It calls for restricting event contracts for government personnel ‘regardless of whether they are trading on insider information.’

The record

Law cited	Section 4c(a)(3) of the Commodity Exchange Act, as amended by the STOCK Act
Reported by markets themselves	Most insider trading incidents were first detected & reported by the platforms, per the committee

What happens next

Watch for Congress to weigh encouraging platforms & regulators to share enforcement data under the memo’s recommendations.

Sources: House Oversight Committee releases memorandum on insider trading risks in prediction markets

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