Kalshi Adds Insider Trading Tools Amid Senate Action

TLDR

• Kalshi launched a new report on insider trading buttons to strengthen compliance on its platform.
• The company introduced tools to block political candidates from betting on their own campaigns.
• Kalshi also restricted athletes and referees from betting on events tied to their leagues.
• Senator Adam Schiff introduced the Prediction Markets Are Gambling Act to target sports-related contracts.
• Lawmakers have introduced six bills this year to increase oversight of prediction markets.

Kalshi has introduced new compliance tools as lawmakers push fresh limits on prediction markets. The $22 billion company added a whistleblower feature and stricter user screening this week. The move comes as Senate bills seek to curb sports and event-based contracts.

Kalshi, Polymarket Expand Insider Trading Safeguards

Kalshi launched a “report insider trading” button on market pages to let users flag suspected violations. The company said it will review each report and take action under its terms. It also deployed tools to block political candidates from betting on their own races.

Kalshi stated that athletes and referees cannot bet on events tied to their leagues. CEO Tarek Mansour said, “No screening system is perfect, and bad actors will always try to cheat.” He added, “We added a whistleblower functionality in our market page to make it easier for traders to flag potential violations.”

Polymarket closed markets tied to military strikes on Iran on February 28. Lawmakers had raised concerns about contracts linked to violent events and national security. Kalshi and Polymarket have both faced scrutiny over how they monitor sensitive markets.

The companies said they will continue to strengthen compliance systems. They aim to detect rule breaches before trades settle. Both platforms operate under federal oversight for derivatives markets.

Senate Bills Target Sports and Event Contracts

Senator Adam Schiff introduced the Prediction Markets Are Gambling Act on Monday. The bill would bar prediction markets from listing sports-related event contracts. Republican Senator John Curtis co-sponsored the legislation.

Schiff said, “Sports prediction contracts are sports bets  just with a different name.” He added that such contracts operate in all 50 states in violation of state and federal law. The bill marks his second proposal on prediction markets this year.

On March 10, Schiff introduced the DEATH BETS Act with Representative Mike Levin. The bill seeks to ban contracts tied to war, terrorism, assassination, or an individual’s death. The proposal followed the closure of Iran strike markets by Kalshi and Polymarket.

Lawmakers have introduced six bills this year to regulate prediction platforms. Commissioner Michael Selig of the Commodity Futures Trading Commission backed prediction markets. He said the CFTC holds exclusive jurisdiction over these products.

Harry Crane, a statistics professor at Rutgers University, addressed the debate. He said traders can also buy oil futures or stocks that track war-related events. Crane stated, “Stakeholders have taken steps to ensure market integrity already.”

He added that oversight measures will grow stronger as the industry develops. Kalshi continues to roll out compliance tools as Senate proposals move forward. The latest actions center on insider trading reports and stricter user restrictions.

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