Tarek Mansour, the CEO of Kalshi, a prominent prediction market platform, is advocating for stricter measures against insider trading, labeling it a serious financial offense. The firm is leveraging its federally regulated status to distinguish itself from international competitors amid renewed scrutiny over insider trading practices in these marketplaces.

In a recent LinkedIn post, Kalshi’s CEO Tarek Mansour noted that recent coverage has blurred the lines between regulated exchanges in the U.S. and unregulated offshore platforms. He expressed concern that, “Recent media coverage has been conflating regulated prediction markets with those operating offshore without regulations. The activities of non-American, unregulated platforms bear no relation to the practices of regulated U.S. platforms,” Mansour emphasized.

Kalshi functions as a federally regulated exchange monitored by the Commodity Futures Trading Commission. Mansour emphasized that the company postponed its launch for several years to obtain U.S. regulatory approval, asserting that this approach is fundamental to their business model.

Insider Trading Regulations

Since its inception, Kalshi has prohibited insider trading, adhering to norms common among financial exchanges. “Trading on material non-public information is strictly forbidden, and any violation constitutes a financial crime,” he stated. “This regulation is applicable to government personnel, policymakers, executives, and anyone privy to confidential information.”

He explained that Kalshi’s framework for handling insider trading is derived from the regulations employed by the New York Stock Exchange and Nasdaq, and includes mechanisms to combat market manipulation and abuse.

Mansour asserted that current allegations being discussed in public forums are associated with unregulated, foreign platforms rather than those supervised by the CFTC. He also emphasized that focusing criticism on regulated U.S. markets for actions stemming from offshore platforms is misguided.

Offshore Market Controversies

The resurgence of interest in prediction markets was triggered by a trade on Polymarket, where one user reportedly profited over $400,000 from a bet relating to the future of Venezuelan President Nicolás Maduro, placed shortly before his detainment.

Although the Maduro bet was made on Polymarket’s offshore crypto platform, in September 2025, the company received backing from the Commodity Futures Trading Commission to reinitiate its U.S. markets and has begun rolling out its regulated U.S. application to waitlisted users.

This event led to suggestions that prediction markets could allow traders to profit from access to non-public information.

Support and Limitations of Legislation

Kalshi has expressed support for an upcoming legislation proposed by Rep. Ritchie Torres aimed at preventing federal officials and high-ranking government members from trading on prediction markets using non-public information. Dubbed the Public Integrity in Financial Prediction Markets Act of 2026, the proposal focuses on activities conducted within U.S. jurisdiction.

“Kalshi endorses the proposal that Ritchie Torres intends to introduce to reinforce the ban on insider trading in prediction markets. Our rationale? We already uphold this standard,” Mansour stated.

The proposed legislation would only apply to regulated U.S. companies, excluding offshore platforms, where many of the alleged violations have reportedly occurred.

Mansour argued that prediction markets should not be viewed as a homogenous category and highlighted the significant legal and operational differences between regulated and unregulated operators.