On Friday, the House Oversight Committee sent formal information requests to Calci and PolyMarket, demanding internal records on identity verification and trade monitoring, escalating prediction markets into a compliance check that Congress typically reserves for registered derivatives exchanges.
Rep. James Comer (R-Ky.), the committee’s chairman, announced the investigation, seeking detailed documents on how each platform detects anomalous trading and prevents insider activity. The platforms are supposed to submit the required documents by June 5, which means they have less than two weeks to prepare responses.
🚨NEW: Oversight Chief Comer launches a congressional investigation into insider trading at Calci and Polymarket
“Comer requested documents and communications from both executives on how to verify each company’s identities and detect unusual deals.” @CNBC https://t.co/E4Jo32Irr7
– Rep. James Comer (@RepJamesComer) May 22, 2026
The investigation follows the federal indictment of A.J An American soldier allegedly used secret intelligence information To generate nearly $400,000 in profits on Polymarket, and more recently for Kalshi Three congressional candidates suspended Who placed bets on their races.
“Internal records maintained by prediction market platforms are the only means by which bad actors can be identified,” Comer wrote in letters to Calci CEO Tariq Mansour and Polymarket CEO Shane Coplan. “The Commission requests information to understand how (platforms) implement identity verification…and detect anomalous trading activity.”
What is Congress actually asking for?
The requests cover three specific areas. First, transaction records: not just trade records, but documentation of auditable activities that can support enforcement actions.
Second, KYC systems: Comer’s letters challenge the degree of anonymity that native cryptographic architectures offer users, and ask how identity can be verified for both local and international accounts.
Third, anomaly detection: whether platforms have real-time automated systems capable of flagging suspicious patterns before they lead to a compliance or national security incident.
everythingas an exchange regulated by the CFTC, already Anonymous trading is prohibited It maintains an internal enforcement team. Polymarket’s structure presents a more complex compliance picture. Its blockchain-based, internationally accessible structure was not designed with the transparency requirements that Washington now demands.
“The rapid growth and spread of this platform…and the secrecy it provides users may have created unintended structural conditions that bad actors — particularly individuals with national security clearances — can exploit,” Comer wrote.
What comes next?
Comer said the investigation aims to build a legislative record that supports a law prohibiting government employees and members of Congress from trading in prediction markets. Congressional investigations in this scope typically result in formal regulation.
For brokers evaluating the sector, this means that compliance infrastructure is important: platforms with real-time monitoring, verifiable identity systems, and documented response protocols will be in a position to survive when the rules are put in place.
Investigate or validate it Prediction markets They can restrain themselves, or provide the evidence Congress needs to remove government employees altogether.
On Friday, the House Oversight Committee sent formal information requests to Calci and PolyMarket, demanding internal records on identity verification and trade monitoring, escalating prediction markets into a compliance check that Congress typically reserves for registered derivatives exchanges.
Rep. James Comer (R-Ky.), the committee’s chairman, announced the investigation, seeking detailed documents on how each platform detects anomalous trading and prevents insider activity. The platforms are supposed to submit the required documents by June 5, which means they have less than two weeks to prepare responses.
🚨NEW: Oversight Chief Comer launches a congressional investigation into insider trading at Calci and Polymarket
“Comer requested documents and communications from both executives on how to verify each company’s identities and detect unusual deals.” @CNBC https://t.co/E4Jo32Irr7
– Rep. James Comer (@RepJamesComer) May 22, 2026
The investigation follows the federal indictment of A.J An American soldier allegedly used secret intelligence information To generate nearly $400,000 in profits on Polymarket, and more recently for Kalshi Three congressional candidates suspended Who placed bets on their races.
“Internal records maintained by prediction market platforms are the only means by which bad actors can be identified,” Comer wrote in letters to Calci CEO Tariq Mansour and Polymarket CEO Shane Coplan. “The Commission requests information to understand how (platforms) implement identity verification…and detect anomalous trading activity.”
What is Congress actually asking for?
The requests cover three specific areas. First, transaction records: not just trade records, but documentation of auditable activities that can support enforcement actions.
Second, KYC systems: Comer’s letters challenge the degree of anonymity that native cryptographic architectures offer users, and ask how identity can be verified for both local and international accounts.
Third, anomaly detection: whether platforms have real-time automated systems capable of flagging suspicious patterns before they lead to a compliance or national security incident.
everythingas an exchange regulated by the CFTC, already Anonymous trading is prohibited It maintains an internal enforcement team. Polymarket’s structure presents a more complex compliance picture. Its blockchain-based, internationally accessible structure was not designed with the transparency requirements that Washington now demands.
“The rapid growth and spread of this platform…and the secrecy it provides users may have created unintended structural conditions that bad actors — particularly individuals with national security clearances — can exploit,” Comer wrote.
What comes next?
Comer said the investigation aims to build a legislative record that supports a law prohibiting government employees and members of Congress from trading in prediction markets. Congressional investigations in this scope typically result in formal regulation.
For brokers evaluating the sector, this means that compliance infrastructure is important: platforms with real-time monitoring, verifiable identity systems, and documented response protocols will be in a position to survive when the rules are put in place.
Investigate or validate it Prediction markets They can restrain themselves, or provide the evidence Congress needs to remove government employees altogether.
