House Oversight panel broadens prediction market trading probe to Crypto.com, Hyperliquid and PredictIt

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House expands market probe

Highlights

House Oversight Committee Chairman Rep. James Comer sent letters to Crypto.com, Hyperliquid, and PredictIt demanding detailed records on user verification, flagged trades, and regulatory referrals.
Requests include data on trades potentially involving nonpublic information, affiliate employee activities, and any government officials trading contracts linked to crypto regulations or regulatory status.
The expanded probe follows May inquiries into Kalshi and Polymarket and could inform legislation barring government officials from participating in prediction market trading.

Requests target user checks and suspicious trades

The Block reports that House Oversight Committee Chairman Rep. James Comer sent letters on Tuesday to Crypto.com, Hyperliquid and PredictIt seeking detailed records on how the platforms verify users, flag questionable trading activity and refer cases to regulators or law enforcement.

The requests go beyond broad compliance policies. Comer asked the companies to describe the tools they use to identify trades that could involve nonpublic information and to provide records of any referrals made to authorities over the past two and a half years.

Crypto.com was asked whether employees of any affiliates traded on contracts tied to corporate decisions known internally before becoming public, including token listings or custody decisions. Comer also sought records on any government officials who may have traded contracts linked to crypto regulation or the exchange's own regulatory status.

In Hyperliquid's case, the letter focuses on reports of a large leveraged short position placed before a major U.S. tariff announcement last October. Comer asked how the platform identifies account holders and what procedures it follows when referring suspicious trades to U.S. authorities.

For PredictIt, which is owned by Aristotle Exchange, the committee sought information on trading tied to elections, nominations and other government actions involving current or former officials.

Probe could shape future restrictions

Comer said in a statement that as online prediction platforms grow more mainstream, some bad actors have used them to make thousands of dollars from bets based on nonpublic information.

The latest letters extend an investigation the committee began in May with requests to Kalshi and Polymarket. The committee says it has since received nearly 1,000 documents and multiple briefings from representatives of those companies.

Comer says the broader effort is intended to measure the scale of insider trading in prediction markets and could inform legislation to bar government officials from participating in such trading. The Block says it contacted Crypto.com, Hyperliquid and PredictIt for comment but did not receive responses by publication.

Our earlier coverage of the House Oversight Committee’s expanding probe into prediction markets outlined Chairman James Comer’s document requests to Hyperliquid Labs, Crypto.com and Aristotle Exchange on identity and location verification, market surveillance and insider-trading safeguards. We noted that the inquiry, which started in May with a focus on Kalshi and Polymarket, was broadening as lawmakers questioned whether platforms can stop trading based on nonpublic or classified information.

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