A total of 1,700 pages of investigative documents have provided the foundation for the United States Congress to tighten regulations on prediction market platforms. US House Oversight Committee Chairman James Comer called for new restrictions, including an outright ban on government officials, lawmakers, and congressional staffers trading on exchanges like Polymarket and Kalshi. The move is aimed at closing insider trading loopholes across the federal government.
The formal recommendations were issued on November 13 after the committee completed an in-depth review. In addition to examining investigative documents, the committee held five live briefing sessions with representatives from Kalshi and Polymarket. Oversight focused on insider trading risks spanning all three branches of government: executive, legislative, and judicial, as well as military personnel and individuals holding security clearances.
The investigation highlights how sensitive official information was leveraged as betting capital before events became public knowledge.
From Leaked Speeches to Military Operations
Cases highlighted in the committee’s report involve personnel across various levels of service. One case involves a high-ranking military member, US Army Sergeant Major Gannon Ken Van Dyke. Van Dyke faces charges after allegedly pocketing more than $409,000 in profits on Polymarket by exploiting classified information regarding an operation to capture former Venezuelan President Nicolás Maduro.
Similar loopholes were uncovered within the White House. Former presidential teleprompter operator Gabriel Perez was found to have used leaked drafts of President Donald Trump’s speeches to place bets on Kalshi. For the violations, the US Commodity Futures Trading Commission (CFTC) fined Perez $65,000 and ordered him to disgorge $107,539 in illicit profits.
Congressional Candidates Betting on Their Own Elections
Potential conflicts of interest have also surfaced in legislative politics. In April 2026, Kalshi froze accounts belonging to three congressional candidates: Mark Moran, Matt Klein, and Ezekiel Enriquez. The three were found trading directly on prediction market contracts tied to the outcomes of their own elections.
The US House Oversight Committee then broadened the scope of its investigation beyond Polymarket and Kalshi. The inquiry now extends to other exchanges, including Hyperliquid Labs, Crypto.com, and Aristotle Exchange, which operates the PredictIt platform.
Mandatory Data Sharing with Federal Agencies
To enforce trading bans on state officials, James Comer urged Congress to pass new legislation. The measure would require prediction market operators to share transaction data with US federal agencies, allowing the identities and trading records of officials to be monitored directly.
For government officials, lawmakers, and military personnel with access to confidential information, the recommendations establish strict boundaries. If the data-sharing bill is enacted, access to internal state information can no longer be exploited for profits on betting exchanges.
Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
