Representative James Comer, the Republican chair of the House Oversight Committee, sent letters on Tuesday to Crypto.com, Hyperliquid and PredictIt requesting trading and identity records as part of an inquiry into insider trading on prediction and crypto trading platforms.

The requests are informational. They do not assert that any of the three companies broke the law. None of the firms had publicly responded at the time of reporting.

Comer asked each company to explain how it identifies users, flags trades that may involve nonpublic information and refers potential wrongdoing to regulators or law enforcement. He also requested a list of actual referrals made over the past two and a half years — a demand that reaches beyond written compliance policy and into operational practice, asking what happened when a monitoring system or a compliance employee concluded that a trade warranted further scrutiny.

Company-specific questions

The letters target different concerns at each venue.

At Crypto.com, Comer asked whether employees of its affiliates traded on contracts tied to corporate decisions they knew about before those decisions became public, citing token listings and custody decisions as examples. He also sought records on government officials who may have traded contracts linked to crypto regulation or Crypto.com's own regulatory status.

At Hyperliquid, the inquiry centers on a reported large leveraged short position placed shortly before a major US tariff announcement last October. Comer asked the platform to explain how it identifies account holders and how it refers suspicious trades to US authorities. The report has not established who controlled the account, the size of the position or how the trade performed.

At PredictIt, owned by Aristotle Exchange, Comer requested information about trades connected to elections, nominations and other government actions involving current or former officials.

The underlying letters were not published, so their exact wording and response deadlines remain unconfirmed.

Compliance capability under scrutiny

The inquiry puts a familiar industry claim under sharper examination: that platforms can connect trading activity to verified identities and detect abuse before markets are harmed. For a prediction market, identity infrastructure matters most when a bet concerns government action, since the relevant question is not whether a platform collects identity documents but whether it can link a specific user to activity that may reflect privileged information.

That is the operational choice embedded in Comer's requests. A platform can collect information, monitor trading against it and refer suspicious cases. The letters ask the companies to demonstrate how those steps function in practice rather than on paper.

What identity verification and surveillance capabilities each platform currently maintains, and what legal protections apply to the requested data, remain unclear. Answering those questions would require the letters themselves and the relevant law.

Possible trading ban for officials

Comer framed the inquiry as an assessment of the extent of insider trading that could produce legislation barring government officials from trading on prediction markets altogether.

"As online prediction platforms grow and become more mainstream, some bad actors have exploited the platforms to make thousands of dollars by placing bets based on nonpublic information," Comer said in a statement.

The letters extend a probe Comer opened in May with requests to Kalshi and Polymarket. The committee said it has since received nearly 1,000 documents and several briefings from representatives of those two companies, suggesting the earlier phase produced enough material to widen the scope to three additional venues.

For the companies involved, the operational stakes are concrete. Compliance functions at Crypto.com, Hyperliquid and PredictIt must now assemble referral histories and identity-verification documentation for a congressional committee, and any gaps between stated policy and actual practice could shape both legislative outcomes and future regulatory attention. Hyperliquid, which operates on its own chain with a decentralized exchange architecture, faces particular pressure to explain how its identity controls work.

The inquiry signals that prediction markets and crypto trading venues are converging into a single congressional oversight conversation, with insider trading as the organizing concern. Whether Comer's potential legislation advances will depend in part on what the requested records show — and the companies' responses, once they arrive, will set the timeline for the next phase of the committee's work.