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2026-01-08 08:30:00

Kalshi CEO Backs Bill to Ban Prediction Market Insider Trading

Mansour said Kalshi already enforces insider-trading standards modeled on major US exchanges, and distanced regulated American platforms from offshore and decentralized competitors after scrutiny of Polymarket over a high-profile wager tied to the capture of Venezuelan President Nicolás Maduro. Despite increased political and regulatory attention, prediction markets continue to post strong growth, with both Kalshi and Polymarket reporting record volumes in December. At the same time, Polymarket expanded its mainstream visibility through a partnership with Dow Jones, which will distribute its prediction market data across major financial media brands, even as the platform navigates still ongoing scrutiny. Kalshi Supports Torres Bill Tarek Mansour, the chief executive of regulated US prediction market platform Kalshi, publicly backed new legislation that was introduced by US Rep. Ritchie Torres. The goal of the legislation is to reinforce a ban on insider trading across prediction market platforms. In a LinkedIn post on Wednesday, Mansour said Kalshi supports the proposed bill because the company already enforces similar restrictions internally, and argued that clear rules are necessary to maintain trust in the emerging prediction markets sector. LinkedIn post from Tarek Mansour Torres’ proposal, titled the Public Integrity in Financial Prediction Markets Act of 2026, will prohibit federal elected officials, political appointees, and executive branch employees from placing bets on prediction markets tied to government policy decisions, official actions, or political outcomes. The bill is designed to address growing concerns that individuals with access to sensitive or non-public government information could exploit prediction markets for personal financial gain. The legislation follows scrutiny of the decentralized prediction market platform Polymarket after reports surfaced that a single account placed a large wager on the removal of Venezuelan President Nicolás Maduro before the end of January and allegedly profited $400,000 after he was captured. The episode caused debate over whether insider or privileged information may have been used. In his comments, Mansour drew a clear line between US-regulated prediction markets and offshore or decentralized platforms. Without naming competitors directly, he criticized recent reporting that he said conflated regulated American exchanges with unregulated, non-US platforms. According to Mansour, Kalshi operates under federal oversight and applies insider-trading standards modeled on those of major US stock exchanges, including the New York Stock Exchange and Nasdaq. These rules prevent people with access to material non-public information from trading in relevant markets. Mansour also explained that Torres’ bill would only apply to regulated American companies, not to offshore platforms where many of the alleged abuses have occurred. Despite the controversy, prediction markets still see impressive growth. In December, both Kalshi and Polymarket reported record monthly trading volumes, with Kalshi posting $6.26 billion and Polymarket reporting $2.28 billion. Since March of 2025, Kalshi has steadily expanded its lead as the largest prediction market exchange by volume. Polymarket monthly volume (Source: Token Terminal ) Polymarket Partners With Dow Jones Meanwhile, Polymarket entered into a partnership with Dow Jones to distribute its prediction market data across several of the publisher’s major media platforms, according to a Wednesday announcement . Under the agreement, Polymarket’s real-time market data will be made available to users of Dow Jones properties including The Wall Street Journal, Barron’s, MarketWatch, and Investor’s Business Daily, among others. According to the announcement, Polymarket’s data will appear in dedicated modules on participating websites and will also be featured in select print placements. The companies said the integration is designed to help readers better understand shifting expectations around political, economic, and market-related events by presenting probabilities derived from active prediction markets. Announcement from Polymarket Dow Jones CEO Almar Latour said the decision to partner with Polymarket was driven by demand from readers seeking new tools to interpret market sentiment and assess risk. Polymarket founder and CEO Shayne Coplan said the collaboration will bring together journalistic coverage with real-time probability data, offering audiences a different lens through which to view developing stories. Polymarket has grown into one of the largest prediction market platforms.The platform attracted widespread attention during the lead-up to the 2024 US presidential election, when its political markets were closely monitored and ultimately aligned with the outcome of President Donald Trump’s victory. Polymarket has also faced a lot of scrutiny over the past few months. In December, the company disclosed that it identified and resolved a security issue affecting a small number of users. Polymarket ultimately attributed the incident to a vulnerability introduced by a third-party authentication provider. More recently, the platform drew attention after the settlement of a contract predicting the removal of Venezuelan President Nicolás Maduro from power after his capture at the direction of President Trump.

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