Oversight Panel Urges Prediction-Market Curbs for U.S. Officials

The House Oversight Committee is pressing Congress to consider tighter rules governing prediction-market activity by government officials, including restrictions that could amount to a complete prohibition. Committee Chairman James Comer framed the proposal as a response to concerns about officials using confidential government information to gain an advantage in markets tied to public or political events.

The committee’s inquiry examined a review of roughly 1,700 pages of documents, according to Crypto Economy and Crypto.news. Crypto Economy also says investigators held multiple briefings with prediction-market operators including Polymarket and Kalshi, two platforms repeatedly mentioned in the coverage. The evidence reportedly included suspicious trading activity by government personnel, military members and people with security clearances.

Across the five reports, the central development is consistent: the Oversight Committee wants additional legal or regulatory controls, and the proposals range from limiting officials’ participation to an outright ban. CoinEdition and Crypto.news specifically describe a potential total prohibition, while The Block also includes a ban among the options under consideration. Decrypt’s summary emphasizes the staff memorandum’s request that Congress “weigh” new restrictions, making it somewhat more cautious about the committee’s position.

CoinEdition says the committee released its findings on Friday after beginning the investigation in May, while Crypto.news identifies a Nov. 13 committee release. The reported review covered both documentary evidence and briefings with leading platforms, but the summaries do not claim that the committee has established a completed enforcement action or enacted a new rule.

DeFiLlama lists Polymarket’s total value locked at $324.48 million, down 0.5% over seven days, providing the most directly relevant platform metric available. The wider crypto market was broadly lower, with total capitalization at $2.33 trillion, Bitcoin down 2.18% over 24 hours, and the Fear & Greed Index at 13, labeled Extreme Fear. No particular coin is identified as being directly affected by the committee proposal.

The immediate issue is whether the recommendations advance through Congress and how any limits would apply to officials, military personnel and clearance holders with access to nonpublic information. Congress may also need to distinguish between broader trading prohibitions and targeted conflict-of-interest restrictions. The committee’s own inquiry and the platforms’ participation in briefings make the proposed rules a regulatory question with consequences for how prediction markets handle politically sensitive contracts.