Polymarkets and Kalshi Crack Down on Insider Trading with New Policies

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Polymarkets and Kalshi Draw a Line — No More Insider Trading or Manipulation

Both Polymarket and Kalshi, platforms where users can predict the outcomes of events, have recently implemented new rules to prevent insider trading.

Polymarket recently announced new rules to ensure fair trading on both its decentralized finance platform and its US exchange, which is regulated by the CFTC.

Polymarket is making its rules easier to understand for everyone using the platform, and emphasizing the systems already in place to ensure fair trading. According to Neal Kumar, Polymarket’s Chief Legal Officer, these changes will help the platform grow and continue to accurately reflect real-world events. “We want to be clear with our users so our markets can continue to deliver accurate information,” Kumar said.

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Polymarket prohibits insider trading in three key ways. It’s against the rules to trade using stolen confidential information, act on illegally obtained tips, or bet on events when you have the power to influence the results.

The platform introduced new Market Integrity pages to clarify how the rules work and offer ways to report anything that seems unusual or potentially fraudulent.

Polymarket prohibits a range of unfair practices, including insider trading, as well as deceptive tactics like spoofing and wash trading. It also bans actions that manipulate the market, such as creating fake transactions, trading based on non-public information, or taking advantage of upcoming trades. These rules are in place to ensure a fair and stable market for everyone.

Kalshi Launches New Screening Tools

Kalshi, another company that allows people to predict future events, also improved its rules and internal checks to prevent unfair practices like insider trading and market manipulation.

Kalshi is introducing new technology to stop politicians, athletes, and other public figures from trading in markets related to politics and sports. This has been in development for several months and is a response to requests from regulators and proposed laws aimed at preventing insider trading. Kalshi hopes these changes will become an industry standard and is eager to work with regulators and others to achieve that goal.

The platform is introducing features to prevent political candidates from profiting off of trades related to their own campaigns. Additionally, Kalshi is working with IC360 to add extra checks for sports trading.

The platform is proactively blocking college and professional athletes, staff, and officials from trading in markets related to the leagues they’re involved with, using carefully selected lists to identify them.

As an analyst, I’ve been following Kalshi’s moves, and I noticed they’ve integrated a really interesting feature. Now, right on their trading pages, users can easily report anything that looks like a rule violation while they’re reviewing the public trade data. It’s a direct way for the community to help monitor things.

These announcements follow increased attention from regulators and legislators on prediction markets. Just yesterday, Senators Adam Schiff and John Curtis proposed a new bill, the “Prediction Markets Are Gambling Act,” which aims to prohibit these platforms from offering bets on sports outcomes.

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2026-03-24 13:46