But the rules may pose a minor hurdle for people who just have to cheat.
Kalshi is taking a new step toward preventing insider trading on its platform. For certain bets, the prediction market will require users to disclose where they work. The new rules will be rolling out in the coming weeks, and are expected to be applied to topics such as company performance and national security, although the exact guidelines have not been disclosed yet.
A rep from the company told The Wall Street Journal, which first reported on this change, that Kalshi would typically confirm the employment information if it finds suspicious activity connected to an account.
Insider trading has been a recurring problem for prediction markets. Kalshi has already had multiple high-profile cases on its watch, including an employee of YouTuber MrBeast and three political office candidates, one of whom tried to spin it as a campaign promise for prediction market regulation. The most recent instance saw insider trading allegations made against former Congressman George Santos.
Considering how willing prediction market users have been to flout the rules, it’s hard to guess whether this policy will substantially curb insider trading or whether people will simply find new ways to orchestrate lucrative wins. While several states have attempted to sue 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 the businesses have gained more traction, such as a ban in Spain while the domestic leadership investigates how to regulate them.
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