Kalshi has announced a suite of new compliance measures, including mandatory employer disclosures for traders in higher-risk markets and a risk scoring system for proposed contracts. The prediction market platform reported conducting over 150 investigations, blocking more than 100 potential insider trades, and making 20 law enforcement referrals during the first quarter of 2026.
New Compliance Measures and Risk Scoring
According to a company blog post on Tuesday, the measures took effect immediately based on recommendations from Kalshi's independent Surveillance Audit Committee, established in February to oversee market integrity. Each proposed market will now receive a risk score before launch, considering factors such as regulatory compliance, insider-trading exposure, market significance, and national security concerns. Bobby DeNault, Kalshi’s enforcement and legal counsel, stated that the national security review helps identify markets that could create risks for participants or the platform before listing.
For markets deemed more vulnerable to insider trading or manipulation, Kalshi now requires participants to disclose their employers before trading. The company said this process helps identify potential insiders and restrict access before transactions occur. Additional tools include a whistleblower reporting system that lets users flag suspected market abuse directly to the firm.
Growing Scrutiny on Prediction Markets
Recent enforcement actions have intensified scrutiny on prediction markets from regulators, lawmakers, and law enforcement. Earlier this month, the Department of Justice and the Commodity Futures Trading Commission investigated former U.S. Representative George Santos after Kalshi detected suspicious trading linked to a contract on his attendance at President Trump’s State of the Union address. Kalshi froze Santos’ account and referred the matter to authorities.
Similar cases have emerged across the sector. A U.S. Army Special Forces soldier was charged in April for allegedly using classified information to trade on Polymarket related to the capture of former Venezuelan President Nicolás Maduro. In another case, Google software engineer Michele Spagnuolo was accused of using confidential company information to trade Google-related contracts on Polymarket, generating about $1.2 million in profits. In May, House Oversight Committee Chairman James Comer requested information from Kalshi and Polymarket regarding their monitoring systems and enforcement procedures.
Business Expansion Amid Compliance Push
Kalshi's compliance initiatives come during a period of rapid growth. Just one day before the announcement, the Better Business Bureau’s National Advertising Division referred Kalshi to regulatory authorities after it declined to participate in a review of influencer advertising disclosures. Meanwhile, Kalshi continues to expand its cryptocurrency offerings, recently filing with the CFTC to list perpetual futures tied to Hyperliquid’s HYPE token, following the launch of Ethereum perpetual futures under its American Perpetuals product line.