The chief executive of prediction market exchange Kalshi has publicly endorsed new U.S. legislation that would prohibit insider trading on political and policy-based prediction markets.
Tarek Mansour, CEO of Kalshi, voiced his support for the Public Integrity in Financial Prediction Markets Act of 2026, proposed earlier this week by U.S. Representative Ritchie Torres (D-NY), in a LinkedIn post on Wednesday.
Drawing A Line Between Regulated And Offshore Markets
Mansour emphasized that Kalshi already enforces strict rules against insider trading, similar to those used by traditional financial exchanges.
“Kalshi is supportive of the bill Ritchie Torres is looking to introduce to affirm the ban on insider trading on prediction markets,” Mansour wrote. “Why? Because we already implement it.”
His remarks appear aimed at differentiating Kalshi from offshore prediction platforms that operate outside U.S. regulatory oversight.
“This should be obvious, but some recent reporting has been conflating regulated prediction markets with unregulated, offshore prediction markets. What non-American, unregulated platforms do has no relationship to what regulated, American platforms do,” Mansour said.
Lawmakers Respond To Ethical Concerns
The renewed scrutiny of prediction markets comes after reports surfaced of traders earning large profits on politically sensitive contracts, raising questions about whether inside information played a role. A Polymarket user won over $436,000 by correctly predicting the ousting of Venezuelan President Nicolás Maduro just hours before it happened.
There has also been heightened concern in Washington over how prediction markets intersect with government decision-making. Rep. Torres has argued that allowing public officials to trade on markets tied to their own policy actions undermines trust and creates clear conflicts of interest.
While the bill remains in early stages, it reflects a broader push by lawmakers to bring greater transparency and accountability to fast-growing forecasting markets.
Kalshi reported a record $6.26 billion while Polymarket saw $2.28 billion in December’s monthly volumes, according to The Block‘s dashboard, in a sign that prediction markets are seeing sustained growth and increasing trader participation.
Image via Shutterstock
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