House Oversight Committee expands prediction market insider trading probe to Hyperliquid and others

House Oversight Committee Chairman James Comer is widening a congressional inquiry into insider trading on prediction markets, according to CNBC. Comer, a Republican congressman from Kentucky, sent letters on Tuesday seeking documents and information from the CEOs of Hyperliquid Labs, Crypto.com, and Aristotle Exchange Inc., the company behind the PredictIt platform. The requests focus on how the platforms verify user identities and what systems they use to detect and prevent insider trading. In a statement, Comer said the committee is examining whether these platforms are meeting their legal obligations and whether they have adequate safeguards in place before improper trading occurs. He said that as online prediction platforms continue to grow and move further into the mainstream, some bad actors are using non-public information to place bets and make thousands of dollars. The expanded probe puts several major online platforms under direct scrutiny as lawmakers seek more detail on their compliance controls.