TLDR Kalshi and Polymarket both announced new insider trading safeguards on the same day amid pressure from U.S. lawmakers and regulators. Kalshi is launching tech tools to preemptively block politicians and athletes from trading on their own events. Polymarket expanded its market integrity rules and is building an AI-powered surveillance platform with Palantir and TWG AI. A recent survey found 60% of prediction market users suspect insider trading is happening on these platforms. Multiple federal and state bills have been introduced to regulate or ban prediction markets across the U.S.
Kalshi and Polymarket, two of the biggest prediction market platforms in the U.S., announced new measures on the same day to fight insider trading and market manipulation.
The moves come as federal lawmakers and regulators have turned up the pressure on the prediction market industry. Both platforms said the changes include stricter trading restrictions, new enforcement tools, and better surveillance systems.
Kalshi said it is rolling out what it calls “technological guardrails” that will preemptively block politicians, athletes, and other relevant individuals from trading on certain politics and sports markets. The company said it already had rules against this kind of activity but previously relied on investigations after trades were placed.
The platform pointed to a recent enforcement action against a political candidate who traded on their own election. Kalshi said its new tools would stop trades like that before they happen.
Kalshi Partners With Integrity Firm for Sports Screening
Kalshi is also working with integrity firm IC360 to screen and block individuals involved in college and professional sports from trading on contracts tied to their leagues. The company is adding a whistleblower tool so users can flag suspicious trades directly on market pages.
Kalshi said it had been developing these changes for months. It added that