Kalshi CEO supports ban on insider trading as prediction markets come under scrutiny.

The CEO of Kalshi, Tarek Mansour, has expressed his backing for Rep. Ritchie Torres’ (D-NY) insider trading legislation, which aims to prevent federal officials from participating in prediction markets regarding government policy, actions, or political outcomes.

Mansour highlighted that insider trading is already forbidden on regulated platforms and emphasized the recent confusion arising from the distinction between U.S.-based regulated platforms and offshore markets.

Speaking to CasinoBeats, Kalshi spokesperson Elisabeth Diana emphasized the significance of market integrity for any U.S.-regulated exchange, particularly denoting that recent activities have occurred on unregulated exchanges.

Mansour’s stance on insider trading was reiterated in a LinkedIn post on January 7, underscoring Kalshi’s long-standing ban on these practices. Mansour addressed misleading media coverage that often conflates regulated exchanges with unregulated offshore platforms, clarifying the ethical standards upheld by his company.

This perspective comes in the wake of suspicions surrounding Polymarket’s recent transactions, particularly a profitable bet placed on the Venezuelan President’s removal made through the offshore-facing platform shortly before his public capture. The incident has raised grave concerns about insider trading and market integrity, especially following the approval granted to Polymarket by the Commodity Futures Trading Commission (CFTC) to relaunch regulated U.S. markets and introduce a compliant U.S. app.

Further intensifying the scrutiny was another Polymarket trader’s profitable bet on Google’s Year in Search rankings, fueling allegations of insider trading and drawing attention to the challenge of distinguishing between legitimate speculation and fraudulent practices in prediction markets.

Rep. Torres’ proposal of the Public Integrity in Financial Prediction Markets Act of 2026 reflects the growing demand for norms safeguarding against trader misconduct. The legislation primarily targets federal officials participating in prediction markets and the potential risks posed due to the access to non-public information they possess or might acquire.

Mansour’s endorsement of the bill underscores Kalshi’s commitment to maintaining rigorous standards against insider trading, aligning with the regulations imposed by conventional financial exchanges like the NYSE and Nasdaq. The platform enforces strict prohibitions on trading by individuals possessing privileged information, extending to government officials, policymakers, and corporate executives.

By supporting Torres’ legislation, Kalshi emphasizes its dedication to integrity, transparency, and ethical practices in the prediction market landscape, setting a standard for regulatory compliance that prioritizes the interests of all participants.