Kalshi CEO Supports Legislation Banning Insider Trading in Prediction Markets, Says Platform Already Implemented Relevant Rules

Odaily News Kalshi CEO Tarek Mansour has expressed support for the "Public Integrity Financial Prediction Markets Act of 2026" introduced by U.S. Representative Ritchie Torres, which aims to prohibit insider trading activities in prediction markets. Mansour noted that Kalshi has long implemented measures to ban insider trading in its platform rules.

According to reports, the bill would prohibit federally elected officials, political appointees, and executive branch employees from participating in prediction market trades related to government policies, government actions, or political outcomes. The legislative background is linked to recent market controversies: previously, an account on the decentralized prediction market Polymarket bet that Venezuelan President Maduro would be ousted before the end of January and earned approximately $400,000 after the related event occurred, raising concerns about trading using internal government information.

In his statement, Mansour emphasized the need to distinguish between U.S.-regulated prediction market platforms and unregulated overseas platforms. He stated that Kalshi, as a federally regulated platform, employs insider trading rules similar to those of the New York Stock Exchange and Nasdaq, prohibiting users with access to non-public information from participating in related market trades. He also pointed out that the bill only applies to regulated platforms within the United States, and the current controversy mainly centers on non-U.S., unregulated platforms.

Data shows that in December 2025, both Kalshi and Polymarket reached record-high monthly trading volumes, with Kalshi at approximately $6.26 billion and Polymarket at approximately $2.28 billion. Since March 2025, Kalshi's trading volume has consistently led the market. (The Block)