Kalshi and Polymarket place new bans on insider trading as senators move to curb prediction markets - AP News

Prediction market platforms Kalshi and Polymarket have implemented new restrictions on insider trading as U.S. senators move toward legislation that would impose stricter federal oversight of these betting markets. The platforms' self-regulatory measures come amid growing congressional concern that prediction markets—which allow users to wager on election outcomes, economic events, and other occurrences—could be exploited by insiders with privileged information to profit illegally. Senators view the markets as potentially destabilizing to financial markets and elections, prompting calls for formal regulatory frameworks. The timing suggests the platforms are attempting to preempt stricter federal rules by demonstrating compliance with market integrity standards. The moves reflect a broader tension between the growth of unregulated digital betting platforms and lawmakers' desire to prevent misuse while the Trump administration's regulatory stance on these markets remains in development.