House Oversight Chair Comer Confirms Prediction Market Probe, Subpoenas Possible

Rep. James Comer, chairman of the House Committee on Oversight and Government Reform, confirmed that the committee has begun investigating suspicious trades on prediction markets tied to geopolitical events, signaling a potential congressional probe into insider trading in the sector.

Comer Says Suspicious Trades Could Require Congressional Action

During an appearance on Wednesday on Fox Business’ Mornings with Maria, Comer responded to a question about a letter sent earlier this week by seven House Democrats requesting subpoenas and an investigation into suspicious Iran-related trades.

Well, this is a problem. We’ve all seen those big trades go through hours before something big happens in Iran. We saw the same thing happen in Venezuela… At the end of the day, it’s suspicious. So it’s something that we’re concerned about.”

Comer also acknowledged concerns that government officials may profit from nonpublic information through event contracts.

If someone’s using their knowledge and influence as a government employee or part of our military or part of the administration to profit from that in a prediction market, then they should be held accountable.”

Comer said the Committee on Oversight has already begun investigating:

We’re starting to request information. That’s the process. That’s how it begins,” Comer said. “We’ll request information, and if we have trouble getting it, then a subpoena will follow.”

He added:

My subpoenas hold up in court, so if someone gets a letter from me requesting information or a document, they turn it over 99% of the time.”

Comer added that lawmakers may ultimately need to create new laws governing such activity.

I don’t know what the law is, but if we need to make a law and change a law with respect to that, we will certainly do it.”

He described prediction markets as “uncharted territory,” adding:

No one thought about this two years ago, someone having knowledge about an upcoming invasion of a country and making an enormous bet on a prediction market.”

Lawmakers Requested Subpoenas Earlier This Week

The comments came after a group of seven Democratic lawmakers sent a May 11 letter to Comer requesting that the House Oversight Committee “issue subpoenas and open an investigation into apparent corruption and insider trading occurring in online prediction markets.”

The group was led by Rep. Chris Pappas (D-N.H.) and also included Reps. Maggie Goodlander, Sara Jacobs, Seth Magaziner, Seth Moulton, Dina Titus, and Rashida Tlaib.

The lawmakers cited several allegedly suspicious trading patterns connected to U.S. and Israeli military operations involving Iran, including claims that:

• “A single trader made nearly $1 million with a 93 percent success rate” on Iran-related wagers;
• “38 accounts netted more than $2 million” on February 28 strikes.
• “50 newly created accounts placed coordinated bets on a U.S.-Iran ceasefire on April 7.”

The letter also referenced the recent criminal case involving a U.S. Army special forces soldier accused of using classified information to place trades related to a raid targeting Venezuelan leader Nicolás Maduro.

In the letter, lawmakers argued Congress “has both the authority and the responsibility” to determine whether ethics, classification, or financial disclosure laws were violated.

Pappas Highlights Comer’s Comments

Following Comer’s Fox interview, Pappas issued a press release. He highlighted the chairman’s remarks and reiterated calls for subpoenas to obtain internal platform records.

Pappas reiterated that the public has “a legitimate interest in knowing whether individuals entrusted with classified national security information have used that access for personal financial gain.”

The New Hampshire congressman also pointed to the need for subpoena power to identify the individuals behind the trades. He argued that lawmakers “cannot fulfill that responsibility without knowing who placed these trades.”

Pappas additionally supports the “Public Integrity in Financial Prediction Markets Act of 2026.” The bill would prohibit members of Congress and government employees from trading on political prediction markets when they possess nonpublic information connected to their official duties.

The Senate recently approved a measure banning members, staff, and officers from participating in prediction markets. Shortly after, Senate Minority Leader Chuck Schumer called for the House of Representatives and the White House to follow the Senate’s lead.

Additionally, at the state level, the governors of California, Illinois, and New York have issued executive actions to restrict state employees’ insider betting on prediction markets.

https://www.gamblinginsider.com/news/160204/comer-house-oversight-prediction-market-probe-subpoenas