Comer seeks Kalshi and Polymarket documents on insider-trading safeguards
Rep. James Comer is asking two major prediction-market platforms to turn over records showing how they try to keep insider trading off their sites, CNBC reported. [1]
In announcements on May 22, 2026, Comer said he is seeking information from the CEOs of Kalshi and Polymarket “on their efforts to prevent insider trading on their platforms.” [1] He sent letters that day to Polymarket CEO Shayne Coplan and Kalshi CEO Tarek Mansour requesting documents and details about each company’s anti-insider-trading measures. [1]
In one letter, Comer said the committee is requesting documents and information “to better understand how Polymarket implements identity verification for domestic and international account holders, enforces geographic restrictions, and detects anomalous trading activity to prevent insider trading.” [1] The outreach also sought information about Kalshi’s safeguards, similarly focused on how the platform verifies who is trading, restricts access based on location, and identifies unusual trading patterns. [1]
The request comes after both Kalshi and Polymarket announced earlier in 2026 that they were strengthening their internal insider-trading rules after dubious trades were made public. [1]
Timeline· Developing
The legal conflict over regulation and jurisdiction of prediction markets involving Kalshi, state authorities, and federal government agencies has escalated, with a judge temporarily barring Kalshi from operating in Nevada and Nevada suing Kalshi after the company lost its bid to stop state action; meanwhile, Kalshi introduced new tools to prevent minors from trading, confirmed a $1 billion funding raise at a $22 billion valuation amid a booming prediction market industry, blocked a Special Forces Sgt. involved in the Polymarket Maduro raid bet case from trading on its platform, most recently fined and suspended a MrBeast employee for insider trading, and now faces a congressional probe launched by Rep. James Comer into insider trading on Kalshi and Polymarket.
Federal administration voices support for prediction markets
Reports emerged that the Trump administration backed Kalshi and competitor Polymarket as several states moved to restrict or ban prediction markets, framing the issue as a national policy dispute. This signaled potential federal interest in the regulatory battles unfolding at the state level.
Nevada files suit seeking to block Kalshi market
Nevada's regulators sued Kalshi, alleging the company's sports-related prediction contracts amounted to unlicensed sports gambling and asking courts to block the market. The filing launched formal legal action challenging Kalshi's operations in the state.
Judge temporarily bars Kalshi from operating in Nevada
A court issued a temporary order preventing Kalshi from operating in Nevada while the state's legal challenge proceeded, effectively blocking the company's prediction market access to Nevada customers. The injunction marked an immediate operational impact from the lawsuit.
Kalshi sues Nevada and New Jersey regulators
In response to cease-and-desist orders and the Nevada action, Kalshi filed suit against Nevada and New Jersey gaming regulators, challenging their attempts to shut down its markets. The countersuit escalated the dispute into reciprocal litigation between the company and state authorities.
Court battle with Nevada Gaming Control Board continued
The legal fight continued as Kalshi and the Nevada Gaming Control Board engaged in ongoing court proceedings following the temporary block, with both sides litigating regulatory authority and the classification of prediction contracts. The continuing dispute kept Kalshi's Nevada operations in limbo.
Kalshi raises $1B and rolls out product and safety changes
Amid the regulatory battles, Kalshi confirmed a $1 billion funding round at a $22 billion valuation and announced product moves — including crypto deposit options and new tools to block minors — demonstrating financial backing and operational adjustments while litigation proceeded. The developments showed the company was pursuing growth and risk controls despite state bans.
Sources (1)
Published May 22, 2026
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