US House Investigates Polymarket and Kalshi Over Iran Trades
Prediction markets are facing severe scrutiny in Washington today as Representative James Comer has launched a congressional probe into major platforms Kalshi and Polymarket. The investigation demands information regarding "suspiciously timed trades" executed just prior to US military actions against Iran, raising alarms over potential insider trading.
In a preemptive strike against regulatory backlash, Kalshi has debuted a new lobbying arm called "Americans for Fair Markets." The advocacy group, backed by a former Trump official, aims to shape Washington's perception of event contracts. "We’re not going to be outspent or out-organized by entrenched interests protecting their monopolies," stated John Bivona, Kalshi's head of government relations, in a recent announcement.
The regulatory environment surrounding these markets is growing increasingly complex. A new New York Times investigation revealed that senior CFTC officials were suspended and pushed out of the agency after raising concerns about platforms including Polymarket, Crypto.com, and Gemini.
Indonesia Blocks Polymarket Amid Presidential Exit Bets
International pressure is also mounting. Indonesia has officially blocked access to Polymarket, citing gambling concerns. The ban was triggered after a surge of users began betting on whether President Prabowo Subianto would leave office early, highlighting the expanding global scrutiny of decentralized prediction platforms.
Hyperliquid Challenges Traditional Markets
Despite regulatory headwinds, market competition is accelerating. A new FalconX report shows that Hyperliquid is rapidly expanding beyond standard crypto trading. The platform is now moving into pre-IPO markets and prediction contracts, offering 24/7 asset trading that is putting traditional Wall Street giants on high alert. For traders looking to navigate these emerging platforms and regulatory shifts, predictionmarketstools.com provides essential tracking and analytics for prediction contracts.