Kalshi mandates employer disclosures for high-risk prediction market trades
Kalshi is requiring traders to disclose their employer before trading in certain high-risk prediction markets, a move aimed at combating insider trading on the CFTC-registered platform. The policy, announced Tuesday, June 9, applies to markets flagged for elevated insider-trading or manipulation risk. Kalshi also introduced risk-scoring tools and whistleblower mechanisms to detect potential misuse of non-public information. Bobby DeNault, Kalshi's enforcement and legal counsel, announced the change in a blog post. The safeguards come as prediction markets face growing regulatory scrutiny over information asymmetries and suspicious trading activity.
Kalshi must prove its employment-verification and risk-scoring systems can intercept informed traders before they profit. Any surveillance gap leaves the CFTC-registered exchange exposed as a co-defendant when DOJ and CFTC file parallel insider-trading actions.
Kalshi's rollout follows its referral of George Santos to DOJ and CFTC over State of the Union bets, showing the platform is tightening self-policing before regulators force the issue.