Regulated platforms back new legislation targeting misuse of non-public government information
The CEO of Kalshi, a federally regulated U.S. prediction market, has publicly endorsed new legislation aimed at banning insider trading on political and policy-based prediction markets. The move comes amid rising scrutiny of how sensitive government information could be misused for profit on certain platforms.
Kalshi CEO Tarek Mansour stated his support for the Public Integrity in Financial Prediction Markets Act of 2026, introduced by Rep. Ritchie Torres. The proposed bill would prohibit federal elected officials, political appointees, and executive branch employees from betting on markets tied to government policy or political outcomes. Mansour emphasized that Kalshi already enforces similar restrictions, aligning its rules with standards used by the New York Stock Exchange and Nasdaq.
Distancing Regulated and Offshore Platforms
Mansour also drew a clear line between regulated American prediction markets and unregulated, offshore platforms. Recent concerns followed a high-profile case where a single account reportedly earned $400,000 by betting on the ousting of Venezuelan President Nicolás Maduro, raising insider trading alarms. According to Mansour, such incidents are occurring outside the U.S. regulatory framework.
Despite the controversy, prediction markets continue to grow rapidly. In December, Kalshi reported $6.26 billion in monthly trading volume, surpassing Polymarket’s $2.28 billion. Since March 2025, Kalshi has steadily expanded its lead as the largest prediction market by volume, as more companies from crypto and sports betting enter the sector.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.