Kalshi Pushes to Combat Insider Trading in Prediction Markets

Prediction market platform Kalshi is pushing for its compliance framework as it expands its institutional presence. The company has partnered with compliance technology provider Comply to help businesses monitor employee trading activity in prediction markets.

Meanwhile, the move comes as more financial firms explore event-based contracts while regulators continue to examine the fast-growing sector. Kalshi believes stronger surveillance tools can improve transparency and encourage broader institutional participation.

Kalshi Strengthens Compliance Framework

A recent report from CNBC showed that Kalshi has entered into a partnership with compliance technology company Comply to introduce enhanced monitoring tools for enterprise clients. The integration will allow firms using Comply’s regulatory software to track employee trading activity on Kalshi’s prediction markets.

Notably, the system aims to help companies detect potential misuse of material non-public information and ensure employees comply with internal trading policies. According to the company, the monitoring capabilities will also cover Kalshi’s planned perpetual futures products once they become available.

Meanwhile, the announcement reflects growing demand from institutional investors seeking compliance standards similar to those used in traditional financial markets. Many firms already rely on surveillance systems for stocks, bonds, and digital assets. They now expect comparable oversight before increasing exposure to prediction markets.

The report showed that Kalshi said discussions with institutional clients have highlighted the need for greater transparency around employee trading. Company executives noted that the prediction markets platform already operates an internal surveillance program. However, many firms also want direct access to compliance data for their own monitoring processes.

Expansion Plans Continue Despite Regulatory Hurdles

The compliance announcement comes during an active period for Kalshi. Last month, the company sought regulatory approval to expand its derivatives offerings beyond crypto-related products.

At the same time, legal uncertainty continues to surround prediction markets in the United States. The Commodity Futures Trading Commission and prediction market operators, including Kalshi and Polymarket, recently faced a setback after a federal court rejected motions related to legal disputes over sports event contracts.

Separately, the legal battle involving the CFTC and New York has intensified. The regulator has requested court intervention to prevent enforcement actions against federally registered prediction market platforms, while New York Attorney General Letitia James has also filed legal action against Kalshi.

Meanwhile, amid the hurdles, investors are likely to view Kalshi’s latest compliance initiative as a strategic move rather than a routine technology upgrade. Stronger surveillance tools could make prediction markets more attractive to institutional participants that prioritize governance and regulatory safeguards.

For investors seeking to understand how federally registered venues compare to global decentralized alternatives, our comparative guide highlights the best crypto prediction markets operating today.