Kalshi CEO Backs US Bill to Stop Insider Trading in Prediction Markets

US Bill Targets Insider Trading After Polymarket $400K Venezuela Bet

Highlights:

• Kalshi CEO supports a bill banning insider trading in prediction markets.

• Polymarket’s $400K Venezuela bet triggered insider trading concerns.

• U.S.-regulated platforms distance themselves from offshore markets.

Kalshi CEO Backs New Bill to Ban Insider Trading on Prediction Markets

Prediction markets are once again in the spotlight as Kalshi CEO Tarek Mansour publicly endorsed a new U.S. bill aimed at banning insider trading in the rapidly growing sector. 

The proposed legislation comes amid rising concerns over suspicious trading activity on offshore prediction platforms, especially after a controversial bet on Venezuelan politics made headlines.

What Did Kalshi’s CEO Say?

In a LinkedIn post shared this week, CEO Tarek Mansour said he fully supports a bill introduced by U.S. Representative Ritchie Torres that seeks to criminalize insider trading on prediction market platforms.

Mansour made it clear that Tarek already enforces strict insider trading rules and follows standards similar to those used by traditional financial markets like the NYSE and the Nasdaq. 

According to him, the bill simply reinforces what regulated U.S. platforms are already doing.

“Kalshi is supportive of the bill… because we already implemented it,” Mansour wrote.

Source: Official X Page

What's Inside the New U.S. Bill?

The name of the bill, which is formally known as the Public Integrity in Financial Prediction Markets Act of 2026, is to ensure that sensitive government information is not abused. 

If it passes, it would prohibit Federal elected officials, Political appointees, and employees of the Executive branch from betting in predictive markets concerning government actions, policies, or political outcomes.

The relocation will safeguard the confidence of the people and ensure that no one makes a fortune at the expense of insider information.

The $400K Polymarket Controversy Sparked Debate

The new US crypto laws gained momentum when a $400K Polymarket controversy made that Venezuelan President Nicolas Maduro would be removed by the end of January.

This trade was done just before the capture of Nicolas Maduro, and it casts serious doubts that insider trading was done. This event became part of a wider debate concerning the functioning of the unregulated predictive markets and whether they are a threat to political integrity.

Regulated vs Offshore Prediction Markets

Mansour made his chance to distinctly distance Kalshi with platforms such as Polymarket that are offshore and are not subject to U.S. regulation.

He emphasized that:

• Kalshi is controlled on the federal level.

• The users will not be allowed to trade in case they possess non-public or insider information.

• There are no similar legal standards that apply to offshore platforms.

• The recent media reports have given the wrong impression of equating regulated U.S. sites with unregulated foreign sites (Mansour).

Prediction Markets Are Growing Fast

Despite the controversy, Predictions Market is seeing massive growth. In December alone:

• Kalshi registered a trading volume of $6.26 billion monthly.

• Polymarket recorded $2.28 billion, the best

Kalshi has been steadily increasing its volume as the largest predictive exchange since March 2025.

Bigger Picture: Regulation Is Catching Up

As the giants of the cryptocurrency economy, Crypto.Com, Gemini, and DraftKings enter the sphere of the prediction market, the regulation of the industry only grows.

This development signals a clear shift: U.S. regulators want stronger guardrails, especially as political betting becomes more popular. In the case of regulated platforms, such as Kalshi, the bill might enhance credibility--whereas offshore platforms might have more difficult inquiries to resolve in the future.

Conclusion

The evolution points to increasing regulatory scrutiny of the market with the rise in political betting, and the U.S. lawmakers demanding greater protection to maintain market integrity and limit the abuse of information.

Disclaimer: This is not financial advice. Please DYOR before investing. CoinGabbar is not responsible for any financial losses. Crypto assets are highly volatile, and you can lose your entire investment.