Kalshi Implements Mandatory Employer Disclosure for Traders in Sensitive Markets to Combat Insider Trading

Jun 9, 2026

Prediction market Kalshi is implementing mandatory employer disclosure for traders in high-risk markets to combat rising insider trading. The move, effective immediately, follows several high-profile incidents, including cases involving a Google employee and former Rep. George Santos. Kalshi will also use a risk-scoring system and has referred over 20 cases to law enforcement this year amid a surge in trading volume to $24 billion.

Midterm election insider trading risks

▪In April 2026, the U.S. Senate banned its members and staff from betting on prediction markets.
▪In March 2026, the White House warned staff against using non-public government information on prediction market platforms.
▪Experts warn that policing insider trading during the U.S. midterm elections will be difficult, with at least 6,590 legislative seats in play.

Prediction market trading volume surge

▪Kalshi's monthly trading volume was $16.81 billion in May 2026, while Polymarket's was $7.08 billion.
▪Combined monthly global trading volumes on Kalshi and Polymarket surged nearly fivefold from September to April, reaching about $24 billion.

Granular election contract proliferation

▪Research indicates election-related betting markets are becoming more granular, focusing on variables like voter turnout, which increases insider trading risks.
▪In 2024, a major election year, Polymarket listed 1,293 election-related markets with $7.26 billion in trading volume.

Kalshi enforcement actions

▪In the first quarter of 2026, Kalshi conducted over 150 investigations and made over 20 referrals to law enforcement.
▪Kalshi will use a new risk-scoring system to identify markets with heightened risk of manipulation or insider trading.
▪The new measures are effective immediately and follow recommendations from Kalshi's independent Surveillance Audit Committee, established in February 2026.
▪Prediction market Kalshi will require traders in certain high-risk markets to disclose their employer to combat insider trading.
▪In April 2026, Kalshi suspended three congressional candidates for betting on their own election races.
▪Kalshi reported former U.S. Rep. George Santos to federal authorities over suspicious trades on his State of the Union attendance.

Polymarket compliance framework

▪A U.S. Army soldier was charged with using classified information to make bets on Polymarket regarding Venezuelan President Nicolás Maduro.
▪In May 2026, a Google employee was charged with insider trading for using company data to place bets on rival platform Polymarket.

CFTC staffing shortages

▪The Commodity Futures Trading Commission's (CFTC) enforcement staff is at a 20-year low with 105 positions.
▪A former CFTC enforcement director, Aitan Goelman, said the agency's resources are "not even close" to meeting its needs.