Published on: May 6, 2026, 07:55h.
Updated on: May 6, 2026, 07:55h.
- Kalshi introduces advanced consumer protections
- The measures aim to enhance controls against underage access
- The new tools emerge amid increased federal scrutiny in Washington D.C.
As legislative discussions advance in Congress to bolster consumer protections for prediction markets, the leading platform in the U.S. is proactively enhancing its technologies to better secure traders.
Kalshi operates as the largest prediction market in the U.S. based on trading volume, averaging nearly $500 million daily in notional volume—reflecting the total value of assets exchanged on its derivative markets.
In light of concerns about the Commodity Futures Trading Commission’s capacity to effectively regulate Kalshi and its numerous rivals offering thousands of contracts, Kalshi is implementing enhanced protections aimed at securing accounts and promoting responsible trading practices.
Kalshi’s Enhanced Protections
To further shield against unauthorized access by minors, Kalshi plans to intensify its know-your-customer (KYC) measures. This move includes automatic activation of Face ID for users who have enabled access protections on their mobile devices.
“Parents are encouraged to enable Face ID to prevent minors from accessing their accounts,” Kalshi suggests.
Additionally, selfies will be required for “higher-risk individuals.” The introduction of two-factor authentication for login processes will lend another layer of security against unauthorized access.
To bolster its responsible trading initiatives—including self-exclusion and daily trading limits—Kalshi is launching a feature known as Inner Circle. This tool allows users to share account activities with family and friends for oversight.
Moreover, Kalshi is integrating an AI-driven tool called Health Check, which provides deposit limit recommendations based on users’ trading patterns. The system aims to identify indicators of unhealthy trading behavior and foster awareness of the platform’s responsible gaming features.
“Though we have accomplished a lot, our work continues. We are actively researching and developing new insights that may lead to further protective measures,” Kalshi stated.
In April, Kalshi announced plans to launch an online portal allowing the public to verify if their identification has been used to create an account.
Is Federal Oversight on the Horizon?
A number of legislative proposals have emerged in Congress targeted at establishing federal regulations for prediction markets. These bills range from prohibiting politicians and insiders in Washington D.C. from participating in prediction market trading to regulating event contracts associated with sports.
Senators Kirsten Gillibrand (D-NY) and Dave McCormick (R-PA) are backing the Prediction Market Act of 2026, which aims to impose a ban on federally elected officials trading in prediction markets while also setting clear standards for insider trading and ensuring the perpetual protection of account deposits by segregating customer funds.
Gillibrand and McCormick emphasize the need for prediction markets to have “adequate procedures to verify that all individual customers are at least 18 years old.” Their legislation also proposes creating an independent office within the CFTC to address trader inquiries and disputes.
“Prediction markets are already transforming how Americans perceive and manage risk. This legislation will provide these markets with the clear rules necessary for responsible growth, safeguard everyday investors, and affirm the U.S. as a leader in financial innovation,” McCormick stated.