Kalshi and Polymarket rush to ban insider trading as senators move to curb prediction markets

NEW YORK (AP) — Kalshi and Polymarket, the two biggest prediction market platforms, rushed to institute new industry guardrails and add new surveillance tools on Monday after two key senators announced legislation that could severely curtail the industry’s prospects.

Kalshi said it would ban political candidates from trading on their own campaigns, and it would preemptively block anyone involved in college or professional sports from trading contracts related to the sports they play or are employed by.

In a statement, a Kalshi spokesperson said the company’s new features “further demonstrate our commitment to safe markets.”

Polymarket also instituted its own set of bans and rules. The company rewrote its rules to say clearly that users cannot trade on contracts where they might possess confidential information or could influence the outcome of an event. This would include athletes but could also include company officials, policymakers or anyone who would have enough influence to affect the outcome of an event or know the information in advance.

“These rule enhancements make our expectations abundantly clear for every participant across both platforms,” said Neal Kumar, Polymarket’s chief legal officer, in a statement.

Polymarket, in particular, has faced intense criticism after some of its users made substantial bets ahead of the war in Iran and the Read Entire Article