KALSHI ADDS EMPLOYMENT CHECKS TO COMBAT INSIDER TRADING

Kalshi's new employment verification requirement represents an escalating effort to prevent traders from wagering on information gained through their jobs. Recent arrests have involved insider bets on military operations, Google Search data, and other sensitive activities. The CFTC's proposed rulemaking would establish structured evaluation of prediction market contracts involving terrorism, assassination, war, and other prohibited activities under Section 5c(c)(5)(C) of the Commodity Exchange Act. The requirement applies to select bets rather than all Kalshi trades. While the verification process may create friction for compliant users, it poses only a minor hurdle for those determined to circumvent the rules. This regulatory push comes as prediction markets have grown increasingly popular for wagering on everything from election outcomes to corporate earnings—creating new vectors for insider trading violations. The CFTC action marks the agency's first comprehensive attempt to regulate the emerging sector.