Kalshi, Polymarket tighten insider trading controls amid Senate scrutiny
Kalshi and Polymarket are enhancing insider trading controls and market surveillance due to increased regulatory pressure and Senate scrutiny.Summary
Prediction market platforms Kalshi and Polymarket are implementing stricter measures to prevent insider trading and market manipulation in response to growing regulatory concerns from the Commodity Futures Trading Commission (CFTC) and Congress. Kalshi is introducing new screening tools to block political candidates and sports insiders from trading on related events, alongside a whistleblower feature. Polymarket has updated its governing documents with clearer rules prohibiting trading on confidential information, illegal tips, and direct influence over event outcomes, expanding restrictions on market abuse. These changes come as U.S. senators propose legislation, like the “Prediction Markets Are Gambling Act” and the “Death Bets Act,” to restrict certain types of prediction contracts, particularly those linked to sports and sensitive events. Both platforms utilize surveillance and monitoring to detect violations, with Kalshi recording $10.44 billion and Polymarket $7.94 billion in monthly volume in February.
(Source：The Block)