WASHINGTON, Sept. 30 (CandyPulse) — Congress is taking a closer look at who's trading on prediction markets, and what they might know. House Oversight Committee Chair James Comer has widened an investigation into possible insider trading, sending letters to Crypto.com, Hyperliquid and PredictIt requesting records on how they verify users and catch suspicious trades.
Key takeaways
The letters, sent Tuesday, ask each company how it identifies its customers and how it spots trades that could be based on nonpublic information, according to The Block and CNBC. Each letter also has a specific focus:
Prediction markets let people bet on real-world events, from elections to policy decisions. That makes them unusually exposed to insider trading: someone who knows the outcome in advance can profit almost risk-free. As these platforms have grown, lawmakers have become increasingly concerned about officials and insiders using them.
This isn't new pressure. The investigation started in May with Kalshi and Polymarket, which have reportedly handed over nearly 1,000 documents across five briefings.
A request for records is not an accusation of wrongdoing. None of the three platforms has been charged with anything, and the letters are an information-gathering step.
All eyes are on the Oct. 13 deadline. What the platforms hand over could shape new rules for prediction markets, a sector that includes on-chain players like CandyBet, launching soon on CandyChain.
This article is for information only and is not legal or financial advice.
Sources: The Block and CNBC, September 29, 2026.
Zano Rolls Back a Month of Its Blockchain in Emergency Recovery
Hut 8 Secures $1.07 Billion Credit Line to Fund Its Infrastructure Expansion
Bitcoin Gets a Euro Hedge: HANetf Launches World's First Euro-Hedged Bitcoin ETC
CoinSwitch Revenue Surges 150% to ₹324 Crore as India's Crypto Platform Turns Profitable