House Oversight Committee Chair James Comer, a Kentucky Republican, said on Friday, November 13, that Congress should consider restricting or outright banning prediction market trading by government officials, The Block reported. The call follows an investigation the committee opened in May into insider trading risks among officials, military personnel and people holding security clearances.
According to the report, the committee’s memo says lawmakers could either pass legislation limiting which bets federal employees, members of Congress and congressional staff may place, or impose a full prohibition. Any restriction could cover all branches of government or only certain contracts, such as those tied to government action. The panel reviewed 1,700 pages of documents and received five bipartisan staff briefings from prediction market companies. It also recommended that companies and federal agencies share the information needed to enforce any rules.
The Block said Kalshi and Polymarket state that they have tightened controls against insider use by officials. In April, the Senate passed a resolution barring its own members from trading on prediction markets, according to the same report. The article did not name a specific House bill.
The report cited concerns that followed an allegation that an active-duty Army soldier used confidential information to bet on Polymarket before Nicolas Maduro’s capture, among other cases. The memo is a recommendation, not law, and no legislation has yet been reported to follow it.
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