Kalshi CEO Backs US Bill To Ban Insider Trading On Prediction Markets Rules

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Kalshi CEO publicly endorsed Rep. Ritchie Torres’ bill targeting insider trading on prediction markets.
The bill would bar federal officials and staff from betting on political or policy-based markets.
Mansour said Kalshi already applies insider trading rules used by US stock exchanges.
The move follows scrutiny after a Polymarket trade earned about $400,000 on a political bet.

Kalshi’s chief executive has publicly backed new U.S. legislation that would restrict insider trading on prediction markets, as scrutiny grows around political betting and access to non-public information. The stance places the regulated exchange at the center of a policy debate now reaching Congress. Lawmakers, platforms, and traders are all adjusting to tighter oversight, while volumes across prediction markets continue to expand at record levels.

Kalshi CEO Supports Congressional Push on Insider Trading

Kalshi CEO Tarek Mansour said the company supports a bill aimed at banning insider trading on prediction markets. Mansour shared his position in a LinkedIn post responding to growing concerns around political betting. He said Kalshi already enforces rules that prevent trading based on non-public information.

“Kalshi is supportive of the bill Ritchie Torres is looking to introduce to affirm the ban on insider trading on prediction markets,” Mansour wrote. He added that such safeguards are already in place on Kalshi’s platform. His comments come as lawmakers review how prediction markets intersect with public policy.

Notable: Kalshi CEO Tarek Mansour says on Linkedin the prediction market company is “supportive” of legislation from Rep. Ritchie Torres (D-NY) to ban government officials from insider trading on platforms like theirs pic.twitter.com/k8T9lykf1a
— Brendan Pedersen (@BrendanPedersen) January 7, 2026

Mansour stressed that Kalshi operates under U.S. regulatory oversight. He said its policies are modeled on standards used by major U.S. exchanges. These rules restrict trading by users who have access to confidential or sensitive information tied to specific markets.

Details of the Torres Bill and Its Scope

The bill was introduced by Ritchie Torres earlier this month. Titled the Public Integrity in Financial Prediction Markets Act of 2026, it targets political insiders. The proposal would bar federal lawmakers, political appointees, and executive branch employees from betting on certain prediction markets.

The restriction applies to markets linked to government policy, government action, or political outcomes. The aim is to reduce conflicts of interest and prevent misuse of privileged information. The bill focuses on regulated U.S. platforms, not offshore or decentralized services.

Torres introduced the proposal after reports of large profits tied to political events. Lawmakers have raised concerns that prediction markets could be misused by insiders. The bill seeks to clarify legal boundaries as the sector grows.

Polymarket Case Draws Attention to Insider Risks

Concerns intensified after activity on Polymarket, a decentralized prediction market. One account reportedly earned about $400,000 from a wager tied to Venezuelan politics. The bet predicted that President Nicolás Maduro would be ousted by the end of January.

The profit followed reports of Maduro’s capture, which fueled speculation about insider knowledge. While no formal findings were announced, the case raised questions across the industry. It also renewed debate on whether decentralized platforms can enforce trading restrictions.

Mansour addressed this issue indirectly in his post. He said regulated U.S. markets should not be grouped with offshore platforms. “What non-American, unregulated platforms do has no relationship to what regulated, American platforms do,” he wrote.

Regulation, Volumes, and Industry Expansion

Kalshi is regulated in the United States and follows federal rules. Mansour said the company applies insider trading standards similar to those of the NYSE and Nasdaq. These rules block users from trading if they hold material non-public information.

He also noted limits of the proposed bill. The legislation would apply only to regulated American firms. Unregulated and non-American platforms would fall outside its scope. Mansour said alleged insider issues are mostly occurring in those markets.

Despite policy debates, trading activity continues to rise. In December, Kalshi reported $6.26 billion in monthly volume. Polymarket recorded $2.28 billion during the same period. Data from The Block shows Kalshi has widened its lead since March 2025.

Other firms are entering the space as interest grows. These include Crypto.com, Gemini, and DraftKings. Their involvement reflects broader demand, even as regulators move toward clearer rules.