The U.S. House Oversight Committee proposed restricting or fully banning people who have access to nonpublic information through their official duties from trading on prediction markets.
According to The Block, the committee published the findings of its review, launched in May, on Friday. Committee Chairman James Comer said they had reviewed about 1,700 pages of documents and received five briefings from prediction market companies.
One case raised in the review involved an active-duty U.S. service member who allegedly bet on Polymarket based on confidential information before the capture of Nicolás Maduro.
What is the committee proposing besides a full ban?
One option is to completely ban federal employees, members of Congress, and congressional staff from trading on prediction markets. The other is to limit the ban to contracts based on government-related events. The committee also proposed that platforms and federal agencies share information so the rules can be enforced.
Kalshi and Polymarket said they had tightened controls to prevent the use of insider information. The Senate passed a resolution in April banning its own members from trading on prediction markets; the broader restrictions raised by the committee are still only proposals.
Not investment advice.