Oversight Chair James Comer demands info from Kalshi, Polymarket CEOs over alleged insider trading
House Oversight Committee Chairman James Comer is demanding information from the CEOs of Kalshi and Polymarket over accusations the prediction markets have allowed insider trading to run rampant. Internal records “are the only means by which bad actors can be identified and to determine whether platforms are meeting their legal obligations,” the Kentucky Republican wrote in a letter sent Friday to Polymarket CEO Shayne Coplan that was obtained by CNBC.A similar missive was sent Friday to Kalshi CEO Tarek Mansour, too.In the letters, Comer ordered the execs to send company documents by June 5 detailing how they verify identities, enforce geographic restrictions and flag unusual transactions.“There’s a concern now that members of Congress, members of the president’s administration, any type of government employee, can use basic insider knowledge and make huge profits on anything government-related,” Comer told CNBC Friday.The goal is not only an investigation to uncover insider trading, “but also to prove a case that we’ve got to pass some type of legislation,” he added.
“And I think it wouldn’t be too much to ask to say members of Congress can’t participate in the predictions market, nor can government employees or people in the president’s administration.”A spokesperson for Kalshi said the company is “proud of our comprehensive protections against insider trading” and they “look forward to engaging with the Committee and its members.”A spokesperson for Polymarket told The Post the platform “maintains a comprehensive market integrity framework.”“We look forward to engaging with Chairman Comer and the committee on how our platform is a pioneer in transparency,” the spokesperson added.The White House in March warned staffers not to use insider information to place bets on prediction markets.“All federal employees are subject to government ethics guidelines that prohibit the use of nonpublic information for financial benef...