But the rules may pose little obstacle to those who just want to cheat.
Kalshi is taking a new step towards preventing insider trading on its platform. For certain bets, the prediction market requires users to disclose where they operate. The new rules will go into effect in the coming weeks and are expected to cover topics such as company performance and national security, although the exact guidelines have not yet been disclosed.
A representative of the company said wall street journalwhich first reported on this change, says that if Kalshi detects suspicious activity on an account it will typically verify employment information.
Insider trading has been a recurring problem for prediction markets. Kalshi already has several high-profile cases, including an employee of YouTuber MisterBeast and three candidates for political office, one of whom tried to pass it off as a campaign promise for prediction market regulation. The most recent example involved allegations of insider trading against former Congressman George Santos.
Given how willing prediction market users are to flout the rules, it is hard to predict whether this policy will substantially curb insider trading or whether people will find new ways to capture lucrative winnings. While several states have attempted to prosecute prediction markets and regulate them as gambling platforms, the federal government has intervened and claimed sole jurisdiction for the sector under the US Commodity Futures Trading Commission. International efforts to curb businesses have gained more momentum, such as the ban in Spain while domestic leadership examines how to regulate them.
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