TLDR
- Kalshi plans employer disclosures for users trading markets exposed to material non-public information risks.
- The White House warned staff against using confidential government information on prediction market platforms.
- Lawmakers are reviewing how Kalshi and Polymarket monitor suspicious activity and verify user identities.
- Kalshi has opened over 200 investigations into possible prediction market rule violations since early 2025.
- The rule may shape compliance standards as prediction market trading volumes continue to expand.
Kalshi is preparing to require employer disclosures from users trading in markets considered vulnerable to material non-public information. The move follows increased Washington scrutiny after the White House warned staff on March 24, 2026, against using non-public government information on prediction platforms, including Kalshi.
The new requirement is expected to apply to markets tied to political outcomes, corporate events, policy decisions and other areas where workplace access could create informational advantages. Users will submit employer details through an online form before participating in selected high-risk contracts.
The policy comes as prediction market volumes have grown across regulated and crypto-linked platforms. Kalshi and Polymarket have recorded rising activity in recent months, drawing closer attention from regulators, lawmakers and compliance teams.
Employer Disclosure Rule Takes Shape
The employer disclosure measure follows a recommendation from Kalshi’s advisory committee and is expected to roll out in the coming weeks. The company already requires identity checks and operates under a regulated U.S. exchange structure, but the new rule adds a targeted review layer for selected markets.
Kalshi’s existing rulebook bans trading based on material non-public information, source-agency affiliation or direct influence over an event outcome. The updated process is designed to help identify users whose jobs may create access to sensitive information before trades are placed.
The exchange has also used trade surveillance tools, account freezes and referrals to enforcement agencies when internal reviews identify potential violations. In the year leading to February 2026, Kalshi opened more than 200 investigations into possible rule breaches.
Lawmakers Examine Prediction Markets
In May 2026, House Oversight Committee Chair James Comer launched a formal review of prediction market safeguards. Letters were sent to Kalshi Chief Executive Tarek Mansour and Polymarket leadership seeking information on user verification, suspicious activity monitoring and controls for sensitive markets.
Recent disciplinary actions have placed added focus on whether prediction exchanges can police users with privileged information. Kalshi has taken public action in cases involving a MrBeast video editor trading on upcoming content and congressional candidates betting on their own races.
The employer disclosure rule may create extra steps for users in politically sensitive or corporate-linked markets. It also positions Kalshi as a platform seeking to strengthen controls while prediction markets expand into areas watched by regulators.
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