Congress hits Polymarket and Kalshi with a massive insider trading probe

The House Oversight Committee has opened a formal investigation into both platforms after a congressman raised concerns that government employees are making large profits by trading on insider knowledge of policy and national security events. Committee chair James Comer sent letters to both CEOs requesting internal documents on identity verification and how each platform investigates potential insider trading. If Congress forces stricter identity verification or bars certain participants entirely, liquidity tightens -- and tighter liquidity means price gaps between platforms take longer to correct, creating more arb opportunities for OmniPred users.