James Comer

In the letter, the committee requested documents and information related to how Kalshi verifies the identities of domestic and international users, enforces geographic restrictions, and monitors suspicious trading activity that could indicate insider trading across its global platform.

Comer cited several alleged examples of insider trading activity tied to prediction markets. According to the letter, California gubernatorial candidate Kyle Langford allegedly placed a $200 wager on his own race on Kalshi. Three other politicians reportedly placed bets tied to their own elections earlier this year.

The chairman also pointed to a federal indictment unsealed in April against U.S. Army Master Sgt. Gannon Ken Van Dyke, who prosecutors allege used classified information tied to the military operation that resulted in the capture of former Venezuelan President Nicolas Maduro to place wagers on Polymarket that allegedly generated more than $409,000 in profits.

“This growing pattern of insider trading activity on prediction market platforms indicates that Congressional action may be necessary,” Comer wrote.

Kalshi has operated as a Commodity Futures Trading Commission-designated contract market since 2020, making it subject to federal requirements under the Commodity Exchange Act. However, Comer said the committee is concerned that the company’s expansion into more than 140 countries in late 2025 may have created regulatory gaps, particularly around identity verification standards and insider trading enforcement for international users.

The committee warned that the platform’s rapid global growth could create opportunities for bad actors, especially people with access to sensitive national security information, to exploit prediction markets.

The investigation comes as lawmakers on Capitol Hill push competing proposals to regulate the industry.

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Rep. Ritchie Torres (D-NY) recently introduced legislation that would ban federal campaign funds from being used on prediction market wagers.

Other lawmakers are seeking broader restrictions. Rep. Jamie Raskin (D-MD) and Sen. Jeff Merkley (D-OR) have proposed legislation that would ban prediction markets tied to politics, sports, and military conflicts.