Prediction markets operator Kalshi said Thursday it is bolstering its oversight framework to detect insider trading and market manipulation, a move coming just days before Super Bowl 60, one of the year’s busiest betting periods with more than $168 million wagered on its platform.
Pleased to announce that I will be working with @Kalshi to detect and deter insider trading. We aim to set the gold standard in market transparency, and EXCEED the level of protections and transparency provided by major exchanges.https://t.co/gw7ypp4pvL
— Dan Taylor (@ProfAnalytics) February 5, 2026
As part of the initiative, the federally regulated exchange, which offers event contracts that let users trade on outcomes like sports results or geopolitical events, has set up an independent Surveillance Advisory Committee and forged new partnerships to strengthen trading integrity.
The committee will deliver quarterly reports to outside counsel and publish statistics on investigations into suspicious trading activity, Kalshi said. It joins forces with crypto surveillance firm Solidus Labs and Daniel Taylor, director of the Wharton Forensic Analytics Lab, to “detect, investigate, and address market abuse,” aiming to reassure users and regulators alike.
New hires, partnerships and enforcement push
To coordinate these efforts, Kalshi has appointed its lawyer, Robert DeNault, as Head of Enforcement, responsible for working with the surveillance committee, compliance teams, and external partners. Former U.S. Treasury official Brian Nelson, known for his work on terrorism and financial intelligence, will advise on surveillance and compliance matters.
Kalshi’s expanded framework also adds Responsible Trading and Market Integrity hubs on its website to educate users about safeguards and regulatory protections built into its market structure.
The moves reflect rising scrutiny of prediction markets from federal lawmakers and regulators, who have raised concerns about insider trading and manipulation in the industry. Last month, U.S. legislators proposed a bill to bar government insiders from exploiting confidential information in such markets after a high-profile Polymarket user profited from bets tied to Venezuelan President Nicolás Maduro before his capture by U.S. forces.
Meanwhile, Kalshi is also pursuing regulatory approval to offer margin trading in the U.S., which could attract larger institutional participation by allowing traders to post a fraction of a contract’s value upfront, subject to Commodity Futures Trading Commission (CFTC) review.
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