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Kalshi has rolled out new trading restrictions aimed at insider trading risk on political and sports contracts. The update came Monday as prediction markets face legal pressure and fresh questions around market integrity.
Good to Know
Kalshi said the new restrictions were proactive and had been in development for months. Even so, the timing drew attention because the rules landed just hours after a bipartisan U.S. Senate bill was introduced to ban prediction market sports event contracts.
Under the new policy, political candidates running for office will be screened out from trading on markets tied to their own campaigns. Kalshi is also blocking individuals involved in college and professional sports, including athletes, personnel, and referees, from trading markets linked to sports in leagues where they are involved.
The company is making the change as prediction markets face pressure from several directions. More than a dozen states have active lawsuits challenging the legality of sports event contracts. At the same time, unusual trading activity has raised more questions around the integrity of political and world event markets.
Polymarket, a rival platform, also issued stronger insider trading guidance on Monday. Together, the changes show that major prediction market operators are trying to tighten controls while legal and political pressure keeps building.
Not everyone is “happy” with Kalshi tightening its restrictions. Congresswoman Alexandria Ocasia-Cortez (AOC) actually believe it is nothing and believes there are still too many dangers and it should be restricted far beyond what is implemented right now.