Facing mounting pressure from U.S. federal lawmakers and the CFTC, the leading prediction market platforms Kalshi and Polymarket have simultaneously announced sweeping new integrity measures.
The updates include advanced technological blocks to prevent insider trading, enhanced surveillance, and stricter enforcement mechanisms designed to establish an industry-wide standard for market fairness.
Kalshi’s Preemptive Screening Technology
Kalshi is moving beyond post-trade investigations by launching “technological guardrails” that proactively block high-risk individuals from participating in specific markets. The platform will now use automated screening to prevent politicians from trading on their own elections and athletes from wagering on affiliated sports leagues.
To bolster its sports integrity, Kalshi has partnered with the firm IC360 to conduct real-time, preemptive screening. The platform is also introducing a whistleblower tool directly on market pages to allow users to flag suspicious activity instantly. These measures are a direct response to recent enforcement actions where a political candidate was found to have traded on their own campaign outcome.
Polymarket Formalizes Global Integrity Rules
Polymarket has updated its ruleset across both its international crypto platform and its CFTC-regulated U.S. exchange. The new framework clearly prohibits three categories of trading: utilizing stolen confidential information, following illegal tips, and trading by individuals who can influence an event’s outcome.
Neal Kumar, Chief Legal Officer of Polymarket, emphasized the importance of transparency:
“Markets thrive on clarity. These rule enhancements make our expectations abundantly clear for every participant across both platforms and highlight the compliance infrastructure we have already built. As Polymarket continues to scale, we will build on our foundation with clear communication to Polymarket’s users to ensure our markets do what they do best — surface truth.”
Polymarket has also partnered with Palantir Technologies and TWG AI to develop an artificial intelligence-powered surveillance platform. This follows reports of unusual trading patterns on contracts related to military actions in Iran and Venezuela. As legislative proposals like the BETS OFF Act and the Prediction Markets are Gambling Act move through Congress, Kalshi and Polymarket are attempting to prove that they can effectively self-regulate.
