Kalshi CEO Takes a Hard Stance Against Insider Trading

Kalshi CEO Tarek Mansour has taken a firm stance against insider trading in prediction markets, used a recent industry controversy to highlight the differences between regulated and unregulated platforms, and supported new laws that would restrict the misuse of non-public information. He argued that insider trading could damage the sector’s credibility, leading to long-term losses.

Mansour Differentiated Kalshi from Unregulated Platforms

Mansour’s remarks come at a time when prediction markets face intense scrutiny after some high-profile bets on geopolitical events drew questions about whether traders had access to privileged information. One trader on Polymarket reportedly made over$400,000 by precisely predicting the ousting of Venezuelan President Nicolás Maduro, sparking concerns over fairness and transparency.

Mansour clarified that Kalshi explicitly bans insider trading, a rule the firm enforces under a framework similar to established financial exchanges. This stance aligns with his ongoing efforts to portray prediction markets as part of the broader financial ecosystem. According to Mansour, misuse of non-public information is a crime, regardless of the platform involved. 

Insider trading is banned on Kalshi (and always has been). What non-American, unregulated platforms do has no relationship to what regulated, American platforms do.

Tarek Mansour, Kalshi CEO

Distinguishing between regulated US platforms and offshore entities was a key part of Mansour’s message. Critics of offshore prediction markets often point out their opaque rule sets and lack of oversight. Meanwhile, regulated entities like Kalshi are held to stricter compliance standards under CFTC supervision. This distinction could also help Kalshi gain an advantage over other competing prediction platforms.

A New Bill Seeks to Address These Challenges

Mansour’s stance aligns with new legislation proposed by US Congressman Ritchie Torres, who is drafting the Public Integrity in Financial Prediction Markets Act of 2026. The bill bans federal elected officials, political appointees, and executive branch employees from trading on prediction markets when they have access to non-public information through their official duties. 

By voicing support for the bill, Mansour has positioned Kalshi as a company that complies with current insider-trading prohibitions as opposed to its offshore competitors. He was fully in favor of the proposed legislation and argued that this codification would help reassure regulators and participants that prediction markets can operate with integrity.

As the industry navigates these ethical challenges, prediction markets remain a highly contentious topic in the USA. Kalshi is currently involved in legal disputes with several states over its sports contracts, as it argues that its CFTC registration allows it to operate nationwide. Meanwhile, state regulators claim that the platform is exploiting a regulatory loophole to offer unlicensed sports wagering.