The U.S. House of Representatives plans to launch an insider trading investigation into prediction market firms Polymarket and Kalshi.

CoinFeed reported on May 23 that, according to CoinDesk, the U.S. House Oversight Committee plans to investigate prediction market platforms due to concerns that U.S. government employees may use insider information to profit from policy and national security events. Representative James Comer, a Republican from Kentucky and chairman of the House Oversight and Government Reform Committee, stated on CNBC's "Squawk Box" that he is reviewing internal records of the CEOs of Polymarket and Kalshi to determine whether government employees have used insider information to profit from policy, geopolitical, and military operations. He also indicated that he may push for legislation to ban members of Congress, government officials, and other government employees from participating in prediction markets. This investigation comes at a time of rapid growth for prediction markets, which are facing increasingly stringent scrutiny from both parties in Congress.