Kalshi Will Block Athletes and Politicians from Betting on Prediction Markets

FomoAnxiety · 2026-03-24T03:37:41+00:00

Kalshi is tightening rules to curb insider trading and market manipulation in prediction markets. They will block certain trades by athletes and politicians and enhance collaboration with regulators while introducing a whistleblower feature for reporting misconduct.

FomoAnxiety

2026-03-24 03:37:41

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Prediction market platform Kalshi announced that it is tightening its rules in order to prevent insider trading and market manipulation, especially in political and sports markets. As part of this change, the company will now block athletes, officials, and politicians from placing certain trades. While these actions were already against Kalshi’s rules, the new system is designed to prevent them before they happen, rather than react to them after the fact.

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Unsurprisingly, this move comes as regulators pay closer attention to prediction markets, which allow users to bet on real-world events. Kalshi said the changes are meant to follow guidance from the CFTC, as well as the proposed laws from Congress that are aimed at reducing insider trading risks. In fact, reports suggest that U.S. senators are working on a bipartisan bill that could ban certain event-based contracts, especially those tied to sports, for companies regulated by the CFTC.

Kalshi also said it plans to work with regulators and other industry stakeholders to help make these rules standard practice. In addition, the company is introducing a new whistleblower feature that allows users to report suspicious activity directly on its platform. As a result, Kalshi hopes to catch potential violations earlier, before they show up in public trading data, as it continues to grow in a more regulated environment. And speaking of growth, Kalshi’s valuation has more than doubled to $11 billion since October 10, 2025, as shown below.

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