TL;DR:
Kalshi introduced a set of market integrity measures that include mandatory employment verification for traders active in markets with a high risk of insider information or manipulation. The initiative was announced through a blog post signed by Bobby DeNault, the company’s head of enforcement and legal counsel, and took effect immediately.
The measures stem from the first report of the Independent Surveillance Audit Committee, a body created in February 2026 to oversee the platform’s integrity and compliance programs. According to DeNault, the company sought to formalize practices it had already been developing and to incorporate new tools amid growing regulatory and judicial pressure.
The new evaluation framework assigns a risk score to each proposed market before it opens. The criteria considered include the market’s significance, exposure to material non-public information, concentration of outcomes in individual decisions, regulatory compliance and national security risk. This last factor aims to prevent markets on political leadership or foreign policy from generating indirect incentives for violent activities.
For markets that exceed a certain risk threshold, Kalshi requires traders to declare their employer before participating. The measure allows the platform to identify and preventively exclude those who may have insider information about the outcome of a trade. In parallel, the platform introduced whistleblower tools across all its markets, establishing a direct line to the surveillance team that operates around the clock.
During the first quarter of 2026, Kalshi blocked more than 100 potentially irregular trades, completed more than 150 investigations and made more than 20 referrals to law enforcement agencies. Prediction markets have accumulated legal cases: in April, a U.S. soldier was charged with using classified information to trade on Polymarket, and in May a Google engineer was accused of exploiting confidential data to obtain estimated gains of $1.2 million on the same platform.
Kalshi and Polymarket concentrate the bulk of the prediction market, though the gap in their volumes widened in May: the former recorded $16.81 billion compared to the $7.08 billion of its competitor.
