Kalshi cracks down on insider trading as Trump family looks to increase prediction market presence

In Washington, there is plenty of information that can move a market. A government official may know what a president is preparing to announce, whether a particular policy is about to change, or which officials will attend a major event. As prediction markets increasingly list contracts tied to political decisions and government activity, that information can become directly tradable.

The issue is already emerging on Kalshi, which has become one of the industry’s largest platforms. The company has spent years building surveillance systems designed to identify suspicious trading, and Kalshi tells Fortune it has begun aggressively referring suspected misconduct to federal authorities.

“Being federally regulated means that Kalshi bans market manipulation, insider trading, has limits on the types of markets it lists… and publicly reports all trades to the CFTC daily,” Laura Frank, a Kalshi spokesperson, told Fortune. “We have also spent years building custom prediction market trade surveillance and enforcement systems that are similar to those used in the stock market.”

Kalshi’s terms of service and exchange rules prohibit market manipulation and insider trading. Users must complete identity verification before they can trade, and Kalshi says i...