House widens crypto prediction market probe

6.7 Regulation

Sep 29, 2026

The House Oversight Committee has expanded its insider trading probe to include more crypto prediction platforms, seeking records after reports of illicit profits from nonpublic information.

The House Oversight Committee has broadened its investigation into potential insider trading on crypto prediction market platforms. Originally focused on Polymarket and Kalshi, the probe now includes Hyperliquid Labs, Crypto.com, and Aristotle Exchange, which operates PredictIt. Lawmakers have requested records related to identity verification, geographic restrictions, and suspicious trading activity from these platforms, with deadlines set for their responses. The investigation follows reports of traders allegedly using nonpublic or classified information to profit, including a case where a soldier was indicted for earning over $400,000 using classified intel. The committee is examining whether these platforms have sufficient safeguards and compliance measures to prevent illicit trading based on sensitive information. Lawmakers are also considering legislation to explicitly ban government employees from participating in such trading activities.