Prediction market Kalshi reveals new insider trading rules
The Kalshi logo appears on a smartphone placed on a laptop keyboard showing a betting curve on the screen in Creteil, France, on March 9, 2026, during a major scandal and a $54 million lawsuit concerning bets related to the recent strikes in Iran. (P
Prediction market Kalshi revealed new steps aimed at curbing insider trading and market manipulation on its platform.
The changes target the company’s political and sports markets and are designed to prevent people from violating its policies and gaining an unfair advantage. Additionally, a new feature will let users report potential violations.
Kalshi's coming changes
To curb political manipulations, Kalshi is expanding its prohibition on elected officials betting on their own campaigns to everyone who is running for office. The company built tools designed to prevent political candidates from conducting such trades, Enforcement & Legal Counsel Bobby DeNault explained in a blog post.
When it comes to sports trades, Kalshi also aims to prevent trades that break its rules from being placed. DeNault pointed out athletes, personnel, and referees are already banned from trading on sports leagues they are affiliated with. He acknowledged, though, that violations were only investigated after the trades were made. The revised policy are expected to stop the trades ahead of time.
The final change is the addition of a whistleblower function on its market page. DeNault explained the new feature would let users report potential violations in real time.
What they're saying:
"All markets have bad actors, and we believe that staying ahead of bad actors means developing new technology and policies," DeNault wrote.
"Traders on prediction markets want assurances that their counterparties are not cheating," his post ended. "We are committed to banning people who try to cheat. Ensuring market integrity is not just a goal – it is a cornerstone of our business model. Today is just one iteration; we will continue to innovate and improve our systems to protect consumers.
Why you should care:
Kalshi has recently been under fire over suspected insider trading issues. Last month, it took direct action against former California gubernatorial candidate Kyle Langford who was sanctioned for trades last May involving the state’s race for governor. The disciplinary notice also indicated Langford promoted the trades on social media.
The company was also criticized for allowing users to make trades relating to the ouster of Iran’s former Supreme Leader Ayatollah Ali Khamenei. In response, Democratic lawmakers called for laws to bar platforms like it from accepting trades related to military action that could be manipulated by people with insider knowledge of such plans.
The backstory:
The plans announced Tuesday had been in the works for months, DeNault said. He explained that they were meant to respond to guidance from the Commodity Future Trading Commission and proposed Congressional legislation.
The Source: Information from Kalshi News, Reuters, and the Commodity Future Trading Commission were used in this story. It was reported out of Orlando, Florida.