Kalshi Introduces Employer Disclosure Rules to Strengthen Insider Trading Controls in Prediction Markets

Kalshi has introduced new compliance measures aimed at preventing insider trading and market manipulation. The changes include mandatory employer disclosure for traders participating in sensitive markets, enhanced screening procedures, and new whistleblower tools that allow users to report suspicious activity directly to the company.

The measures took effect immediately following recommendations from Kalshi’s independent Surveillance Audit Committee, which was established in February to oversee market integrity and enforcement efforts.

Risk Scoring System Targets High-Risk Markets

Under the new framework, Kalshi will assign risk scores to proposed markets based on several factors, including insider trading risks, regulatory concerns, market significance, and potential national security implications. According to Bobby DeNault, the company’s enforcement and legal counsel, evaluating national security risks before listing a market can help prevent harmful events from affecting trading activity.

For markets considered vulnerable to insider information or manipulation, traders will now be required to disclose their employers before placing trades. The company says this process helps identify and restrict potential insiders before transactions occur.

Increased Scrutiny Across Prediction Markets

Kalshi reported conducting more than 150 investigations, making over 20 referrals to law enforcement, and blocking more than 100 suspected insider trades during the first quarter of 2026.

The move comes as prediction markets face growing scrutiny. Recent cases involving alleged misuse of confidential or classified information have increased pressure on platforms to strengthen oversight. Despite tighter controls, the sector continues to expand, with Kalshi recording $16.81 billion in monthly trading volume during May, reinforcing its position as one of the leading prediction market platforms.