Prediction market platforms Polymarket and Kalshi have introduced new measures to combat insider trading as regulatory scrutiny intensifies in the United States.
Polymarket updated its integrity rules to explicitly prohibit trading on insider information or illegal tips across both its DeFi and CFTC-regulated platforms.
“These rule enhancements make our expectations abundantly clear for every participant across both platforms and highlight the compliance infrastructure we have already built,”
Said Polymarket Chief Legal Officer, Neal Kumar.
The platform also outlined specific examples of prohibited behaviour and employs a multi-layered monitoring system alongside real-time surveillance tools to detect suspicious trading activity.
Kalshi has taken a more preventative approach by banning individuals such as athletes, coaches, and politicians from trading in markets where they may hold insider knowledge.
The firm has also implemented preemptive screening systems and whistleblower tools to block or flag questionable trades before they occur.
These developments follow a series of high-profile incidents, including large profits from politically sensitive bets and arrests tied to classified information, which have increased pressure from lawmakers seeking tighter controls on prediction markets.