Kalshi now requires some traders to disclose their employers before placing bets, the latest move by the federally regulated prediction market to curb insider trading on its fastest-growing contracts. The exchange announced the change on June 9, 2026, alongside a new market risk-scoring system and expanded whistleblower tools. All three measures took effect immediately and stem from the first report by Kalshi’s independent Surveillance Audit Committee, which was appointed earlier this year to stress-test how the company detects market abuse.
A prediction market is a regulated exchange where users trade contracts that pay out based on the outcome of real-world events, from elections to corporate earnings to sports results. The integrity question is simple: someone who knows an outcome in advance can profit at everyone else’s expense.
Key takeaways
- Kalshi will collect employment information from traders in markets flagged as high-risk for insider activity, screening out presumptive insiders before a trade clears.
- A new risk-scoring framework grades every proposed market across six dimensions, including corporate KPI exposure and national security risk, before it can be listed.
- The company reported 150+ insider-trading investigations, 100+ blocked trades, and 20+ law-enforcement referrals in the first quarter of 2026.
- The measures arrive as the CFTC and Congress sharpen scrutiny of prediction markets now handling roughly $178 billion in annualized volume.
Published: June 11, 2026, 09:30 UTC
What Kalshi changed
The headline change is pre-trade employment screening. For markets the exchange deems high-risk, traders must now submit employment information through an online form before they can participate. Kalshi says it will not query that data unless suspicious activity triggers a review, but the system is designed to identify “presumptive insiders,” people who hold material non-public information about an outcome, and block them before a trade is placed.
The second measure is a risk-scoring framework applied to every new market at the listing stage. Kalshi grades proposed contracts across six dimensions: corporate KPI or events risk, outcome concentration, market importance, regulatory compatibility, non-traditional insider risk, and national security risk. Markets that score high on national security, such as contracts touching war or foreign policy, can be rejected outright. The third measure adds whistleblower reporting tools to every market on the platform, feeding tips to a surveillance team Kalshi says monitors trading 24/7.
Why this matters now
Prediction markets have moved from a regulatory curiosity to a multibillion-dollar business, and insider trading has become their defining vulnerability. Kalshi disclosed that in the first quarter of 2026 alone it opened more than 150 investigations, blocked over 100 potential insider trades through its screening tools, and referred more than 20 cases to law enforcement.
The pressure is external as well as internal. In April 2026, the CFTC filed its first-ever insider-trading complaint involving event contracts, alleging that an active-duty U.S. Army service member made more than $404,000 trading Polymarket contracts using nonpublic military intelligence. The agency issued a prediction-markets advisory in February, and a group of Democratic lawmakers has urged the CFTC to write rules reining in the sector. Against that backdrop, Kalshi’s employer-disclosure rule reads as much as a regulatory shield as a surveillance tool.
The impact on traders and the industry
For most users, nothing changes. Sports contracts account for more than 85% of Kalshi’s trading volume, and those markets are unlikely to trigger employment screening. The friction lands on markets tied to corporate performance, geopolitics, and other events where a single person or small group can influence or foresee the result.
The stakes for Kalshi are high. The company raised $1 billion in March at a $22 billion valuation, and its annualized trading volume has more than tripled to roughly $178 billion. Convincing regulators it can police its own contracts is now central to protecting that growth. Rival Polymarket announced similar integrity measures in the same window, a sign the industry is converging on self-regulation ahead of any formal CFTC rulemaking. The Surveillance Audit Committee will issue quarterly reports, so the next round of changes is already on the calendar.
Frequently asked questions
Does every Kalshi trader now have to reveal their employer?
No. Employment disclosure applies only to markets Kalshi flags as high-risk for insider activity, such as contracts tied to corporate results or geopolitical events. Most users, including those trading sports contracts, will not be asked for employer information.
What is a presumptive insider?
A presumptive insider is a trader who likely holds material, non-public information about a market’s outcome. Kalshi’s screening aims to identify these users from their employment profile and block them before they can place a trade in a sensitive market.
Why are regulators focused on prediction-market insider trading?
As volume has surged past $178 billion annualized, contracts on elections, earnings, and geopolitics create clear incentives for people with advance knowledge to profit. The CFTC filed its first event-contract insider case in April 2026, and lawmakers have pushed for formal rules.
