The Republican chair of the House Oversight Committee wants new limits on government officials' bets on prediction markets, including a possible outright ban. The call follows a committee investigation into insider trading risks on the platforms.
House Oversight Committee Chair James Comer, R-Ky., is calling for new limits on government officials' use of prediction markets, including the possibility of an outright ban. The push comes amid growing concerns that public officials could use insider information to profit from bets on the platforms.
Committee releases findings from its May probe
On Friday, the committee released findings of an investigation it launched in May into insider trading risks in prediction markets among government officials, military personnel and those with security clearances. Comer said the committee reviewed 1,700 pages of documents and received five bipartisan staff briefings from prediction market companies.
The committee said reforms should take the form of legislation restricting which bets federal employees, lawmakers and congressional staff can place, or an outright ban. It added that Congress should also encourage prediction market companies and federal agencies to share the information needed to enforce any restrictions.
Cases that raised concern in Washington
Concerns have intensified over the past year, particularly after an active-duty U.S. Army soldier used confidential information to place bets on Polymarket ahead of former Venezuelan President Nicolás Maduro's capture. Others in government have since been found using inside information to make money on prediction market bets, including the White House's former teleprompter operator.
Kalshi and Polymarket, the two major prediction market companies, have both said they have taken steps to tighten controls against officials using inside information. Lawmakers have also acted on their own: in April, the Senate voted to pass a resolution banning members from trading on prediction markets.
Source: The Block
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