Comer Urges Congress to Curb Officials’ Prediction Market Trading
In this article
The U.S. House Oversight Committee on Nov. 13 released the findings of an investigation into insider trading in prediction markets and recommended that Congress legislate restrictions on federal employees, lawmakers and congressional staff, according to Crypto.news. Committee Chair James Comer, a Kentucky Republican, said lawmakers should weigh the options, from a complete ban on trading to limits on contracts connected to government business.
What the committee is asking Congress to do
The recommendations are a call for legislation rather than a rule change in themselves. According to Crypto.news, they leave open whether Congress should prohibit all prediction market trading by officials or restrict particular contracts tied to government business. The committee argued that public servants should not personally profit from nonpublic information associated with their work, and said the restrictions should apply across all three branches of government.
The committee also called for Congress to encourage prediction market companies and federal agencies to share the information needed to enforce any trading limits. Crypto.news reported that the recommendations concern both who can trade and which contracts officials can use.
The two accounts of the package line up on the central points. Crypto.news reported that the committee’s Nov. 13 release said the investigation examined insider trading risks involving government officials, military personnel and people with security clearances; PANews framed the same document as a memorandum recommending that Congress legislate restrictions on federal personnel, members of Congress and their staff. PANews adds a detail not in the Crypto.news account: that most insider trading incidents identified in the review were discovered and reported by the platforms themselves, and that Polymarket and Kalshi are continuing to improve their surveillance systems.
The cases that drove the inquiry
The committee’s findings cite enforcement and criminal matters that predate the recommendations. In the Van Dyke case, an indictment alleged he used classified information to earn more than $409,000 through Polymarket wagers; he pleaded not guilty. Separately, the CFTC announced on Aug. 28 that Perez had traded presidential mention contracts on Kalshi between December 2025 and February 2026. He was ordered to return $107,539.02 in profits and pay a $65,000 civil penalty, with a three-year trading ban; the regulator credited KalshiEX with assisting the investigation and said the penalty reflected a substantial discount under its cooperation policy. In April, Kalshi suspended three congressional candidates — identified as Mark Moran, Matt Klein and Ezekiel Enriquez — after finding they traded contracts tied to their own campaigns, and said those cases did not lead to referrals to the CFTC or Justice Department.
Where the platforms stand
Kalshi and Polymarket have both said they strengthened controls against insider trading. Responding to the Senate’s April 30 vote, Polymarket backed the restrictions and said its terms already prohibited the conduct, while Mansour said Kalshi proactively blocked members of Congress and enforced its insider trading rules. The Senate resolution, introduced by Republican Sen. Bernie Moreno, took effect immediately for senators and Senate staff. Republican Rep. Ashley Hinson has said she would introduce a similar resolution for the House.
Why it matters
The gap between the two chambers is now the story: the Senate has barred its members and staff, while the House has only a promise of a companion resolution, and the executive and judicial branches have no comparable prohibition. Comer’s recommendations would close that gap if Congress acts, but they are advisory and set out competing designs rather than a single bill. The enforcement record matters too — the Van Dyke indictment and the Perez settlement show regulators acting case by case, while the committee’s proposal would move the question upstream to who is allowed to trade at all.
What to watch
Whether Hinson files her House resolution and whether any member introduces legislation based on the committee’s options will determine if the recommendations become rules. The outcome of the Van Dyke prosecution is the other marker to follow, since it remains contested.
Frequently Asked Questions
What did the House Oversight Committee recommend?
It recommended that Congress legislate to restrict federal employees, members of Congress and their staff from trading prediction markets. The options include a complete ban or limits on contracts tied to government business. The committee also called for information sharing between platforms and federal agencies to enforce any restrictions.
Has any branch of government already restricted prediction market trading?
Yes. The Senate adopted its own ban by unanimous consent on April 30, covering senators and Senate staff. Republican Rep. Ashley Hinson subsequently said she would introduce a similar resolution for the House.
What enforcement cases did the investigation cite?
The investigation cited the indictment of Army Master Sergeant Gannon Ken Van Dyke, accused of using classified information to earn more than $409,000 through Polymarket wagers. It also referenced a CFTC settlement in which former White House teleprompter operator Gabriel Perez returned $107,539.02 in profits and paid a $65,000 penalty.
What have Kalshi and Polymarket said about insider trading?
Both companies said they have strengthened controls against insider trading. Kalshi CEO Tarek Mansour said his company proactively blocked members of Congress and enforced its insider trading rules, and Polymarket said its terms already prohibited the conduct.
Sources: crypto.news, PANews
