Congress expanded its investigation into possible insider trading on prediction markets Tuesday, demanding records from three additional companies about identity checks, employee trading and suspicious activity.
House Oversight Committee Chairman James Comer sent letters to Crypto.com, Hyperliquid and Aristotle Exchange, the operator behind PredictIt. The committee wants information about how the platforms identify customers, verify geographic location and detect trades potentially based on nonpublic government information. Oversight Committee
The investigation began in May and previously focused on Polymarket and Kalshi. The committee says it has since received nearly 1,000 documents and participated in five briefings with representatives from those companies. Oversight Committee
The new requests go further. Comer asked the companies to identify suspicious-trading referrals made to regulators or law enforcement during the past two and a half years. Crypto.com was also asked for information involving employee trading around token listings, while the inquiry into prediction platforms focuses partly on bets involving government actions. The Block
The letters do not establish wrongdoing by any of the companies or their users. They are congressional information requests within an ongoing investigation.
Their significance lies in the scope of the inquiry. What began as scrutiny of dedicated prediction markets is now reaching businesses that combine derivatives, crypto trading and prediction-style products.
TOKEN RECON ASSESSMENT
Prediction-market regulation is shifting from the abstract question of whether event contracts constitute gambling toward a harder market-integrity problem: who is trading, what information they possess and whether platforms can identify suspicious activity before privileged information becomes profitable.
The committee’s request for actual regulator and law-enforcement referrals is particularly useful. It can reveal whether platform surveillance systems merely exist on paper or have generated actionable cases.
This is congressional oversight, not an enforcement action. A subpoena, formal regulatory investigation or evidence that government insiders actually traded on nonpublic information would materially escalate the story.
Sources
House Oversight Committee, Comer expands investigation into prediction-market insider trading
The Block, House Oversight seeks records from Crypto.com, Hyperliquid and PredictIt
