Kalshi Requires Employment Disclosure to Combat Insider Trading Risk
In brief
- Kalshi requires employment disclosure for traders accessing markets flagged for insider trading or manipulation risk.
- Platform blocked 100+ potential insider trades, opened 150+ investigations, and referred 20+ cases to law enforcement in 2026.
- Risk-scoring framework evaluates six factors including corporate KPI risk, national security risk, and outcome concentration before listing markets.
New Risk Framework
Kalshi implemented a risk scoring framework that weighs six factors including corporate KPI risk, outcome concentration risk, market importance, regulatory risk, non-traditional insider risk, and national security risk. When a market is proposed for listing, it runs through this system to assess potential vulnerabilities. The company won't verify employment information unless an investigation is already underway, though it may bar some users from individual contracts depending on where they work.
Robert DeNault, head of enforcement at Kalshi, framed the approach as preventative. "By running an assessment on the national security risk a market might present before we list it, we can better prevent dangerous events from having a negative effect on our markets—or vice versa," he said.
Enforcement Track Record
Kalshi opened more than 150 investigations in 2026, blocked more than 100 potential insider trades, referred more than 20 cases to law enforcement, and took five disciplinary actions. The platform also fined and suspended three political candidates for trading on their own elections, conduct it described as political insider trading.
These enforcement actions reflect the scale of insider trading risk on prediction markets. The category has drawn regulatory scrutiny—Rep. Bryan Steil announced plans to add language to the House congressional stock ban bill that would expand it to cover prediction markets.
Expansion and Skepticism
Kalshi expanded whistleblower tools allowing users to report suspicious activity directly to the company's surveillance team. The company has also widened its reach—Kalshi filed to self-certify contracts tied to 12 major altcoins including Ethereum, XRP, Solana, and Dogecoin.
Yet some observers question whether employment disclosure alone addresses the problem. Marcin Kazmierczak, co-founder and COO of Redstone, characterized the measure as incomplete. "The employer disclosure metric is a useful filter, not a solution," he said, noting that material non-public information "rarely travels through a clean employment line" and moves instead through contractors, suppliers, advisors, friends, and family.
