U.S.-registered trading platform Kalshi said some of its traders would be required to disclose their employers when they speculate on the outcome of market outcomes related to corporate earnings, new product introductions and national security-related topics, among others, spokesman said Tuesday.
The new compliance layer follows recommendations from Kalshi’s Independent Surveillance Audit Committee, which identified gaps in the platform’s ability to detect insider trading before it occurs.
The employer-check requirement targets markets where traders could profit from material nonpublic information, according to the Wall Street Journal. Kalshi currently collects addresses, dates of birth, phone numbers, identity documents and partial Social Security numbers, but employment data has not previously been part of its verification process.
The committee found that the current setup at Kalshi would likely result in manual investigation of possible insider relationships on a case-by-case basis only after illegal trading has been suspected. If employee records were also added, the report noted, market surveillance, initial investigations and deterrence capabilities would likely be enhanced.
Kalshi’s Independent Committee pushes stronger surveillance measures
In addition to the employment check, Kalshi will also offer upgraded whistle-blower features which allow traders to report suspicious market behavior directly on market pages.
The exchange also revealed that over 20 referrals were submitted to regulators and law enforcement authorities by Kalshi in the first quarter of 2026 based on perceived issues of insider trading and market manipulation.
One referral reportedly involved former Rep. George Santos (R-N.Y.), who was reported to federal authorities after Kalshi detected suspicious trading activity tied to a market on whether he would attend President Donald Trump’s State of the Union address. Santos has denied wrongdoing.
Compliance push comes amid Polymarket insider trading cases
Kalshi’s new measures arrive as federal prosecutors pursue insider trading-related cases tied to rival prediction market platform Polymarket.
As Cryptopolitan earlier reported, Polymarket updated its market integrity rules earlier this year, extending restrictions on insider trading and market manipulation across its platform.
In April, a U.S. Army soldier was charged with allegedly using classified information related to Venezuelan leader Nicolas Maduro’s capture to place profitable trades on Polymarket. In May, a Google employee was charged with allegedly using confidential data from Google’s annual search trends report to generate roughly $1.2 million in trading profits on the platform.
Polymarket operates primarily outside the United States after a 2022 settlement with the Commodity Futures Trading Commission required it to wind down noncompliant U.S.-facilitated markets.
Kalshi already maintains restrictions on participation in certain event contracts by individuals with direct access to sensitive information. The company recently added facial-recognition verification and said employment information generally will not be verified proactively. Instead, proof of employment may be requested if suspicious trading activity triggers an investigation.
Meanwhile, regulators and lawmakers continue debating whether the growing prediction market industry can effectively police insider trading risks.
