TL;DR
- Expanded Prediction Market Requests: Comer sent letters to Crypto.com, Hyperliquid, and PredictIt seeking records on identity verification, suspicious trading detection, and referrals to regulators or law enforcement.
- Platform Focus: Crypto.com, Hyperliquid, and PredictIt each received tailored requests covering employee trading, government-linked contracts, election-related markets, and suspicious activity procedures.
- Legislative Goal: The House Oversight Committee is reviewing insider trading risks and may use findings to support restrictions on prediction trading by government officials.
The Prediction Market Probe led by House Oversight Committee Chairman Rep. James Comer is expanding to include additional online trading platforms as lawmakers examine how these services identify users and detect potential insider trading. The Prediction Platforms Probe now includes requests for records and information from Crypto.com, Hyperliquid, and PredictIt, with a particular focus on identity verification procedures, suspicious trading activity, and referrals made to regulators or law enforcement over the past two and a half years.
Prediction Market Probe Expands to Additional Platforms
The Prediction Market Probe expands an investigation that originally targeted major industry participants Kalshi and Polymarket. In letters sent Tuesday, Comer requested detailed information from the three platforms about the tools and systems they use to monitor trades that could involve nonpublic information. The Prediction Market Probe seeks records that go beyond general compliance policies.
Crypto.com was asked whether employees affiliated with the company traded contracts tied to corporate decisions known internally before public disclosure, including token listing and custody-related decisions. The committee also requested information about any government officials who may have traded on contracts connected to crypto regulation or the exchange’s regulatory standing.
Questions Focus on Insider Trading Safeguards
The Prediction Platforms Probe places special attention on platform-specific concerns. In Hyperliquid’s case, Comer requested details related to reports of a large leveraged short position that was reportedly placed before a major U.S. tariff announcement last October. The committee wants to better understand how the platform identifies account holders and when suspicious transactions are referred to U.S. authorities.
The Prediction Market Probe also asks PredictIt, owned by Aristotle Exchange, to provide information related to trades involving elections, nominations, and other government actions connected to current or former public officials. According to Comer, growing interest in online prediction platforms has created opportunities for bad actors to profit by placing bets based on nonpublic information. He said Americans deserve confidence that these platforms are taking meaningful steps to identify and prevent insider trading.
Prediction Market Probe Review Continues
The Prediction Market Probe began in May 2026 when the House Oversight Committee launched its examination of online prediction market safeguards. Since then, the committee has received nearly 1,000 documents and five briefings from representatives of Polymarket and Kalshi. The Prediction Market Probe is intended to measure the extent of insider trading risks on these platforms and could help inform potential legislation that would prohibit government officials from participating in prediction market trading activities.
