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In a new trading guardrails announced Monday by two major prediction market platforms, Kalshi and Polymarket, to address insider trading amid growing concerns that markets are being controlled on recent event contracts.
US lawmakers also passed a bipartisan bill to ban event contracts similar to’sports bet’ or ‘casino-style game’. ” , ‘I’m sure it is worth reading.
Kalshi said Monday that it would “preemptively prohibit political candidates from trading on their own campaigns and those who are involved in college and professional sports, including athletes, personnel and referees.”
Kalshi’s ban comes hours after rival Polymarket announced comparatively broad restrictions to prohibit users who trade with stolen confidential information, illegal tips or those who can influence the outcome of a market.
But insider trading has been criticized for the platforms since users of Polymarket have profited from well-timed bets ahead of US and Israeli strikes on Iran and a US military operation to capture Venezuelan President Nicolás Maduro.
The Iran strike bets were’someone with some degree of inside info’, according to Ben Yorke, a former Cointelegraph research analyst, told The Guardian on Monday that the betes at market price had been made and several accounts were apparently used in an apparent attempt to defync their identity.
Kalshi said its ban has “been in the works for months” and was designed toproactively respond to regulatory guidance and legislation introduced in Congress regarding insider trading and market manipulation on prediction markets.
Source: Robert DeNault
Bipartisan bill would ban sports event contracts
The bans come after Democratic Senator Adam Schiff and Republican Senator John Curtis introduced a bill Monday to block some event contracts “that are not distinguishable from gambling” that Kalshi and Polymarket have banned. Paraphrast.
Under the so-called Prediction Markets Are Gambling Act, companies that would include Kalshi and Polymarket US would not be allowed to list event contracts similar to “a sports bet or a casino-style game” as described in the So-Calvinity Futures Trading Commission. Paraphrasingr ’It is.
Ships have sports bet just with another name,’ Schiff said in a statement that “Sports prediction contracts are sports betting”. The offer of these contracts in all fifty states is clearly violative of state and federal law. ” , ‘I’m sure it is worth reading.
This legislation ‘clarifies regulatory jurisdiction, so states can keep control of sports betting and casino gaming,” Curtis said. Paraphrasingr ’It is.
Related: US Senate bill targets prediction markets on war and assassinations
X was told by Kalshi CEO Tarek Mansour, who is part of the Coalition for Prediction Markets lobby group that the bill was “casino lobby hard at work.” Paraphrasingr ’It is.
“This bill isn’t about protecting consumers; it’s about protecting monopolies,” he added.
In several states, lawsuits are involving prediction market platforms such as Kalshi, Polymarket and Coinbase, which have claimed sports event contracts are gambling that requires a state license to offer services.
The platforms have argued that their contracts are not illegal betting and, regardless of the fact they fall under exclusive jurisdiction of state authorities (CFTC) or subject to special jurisdiction.
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Thanks for reading Kalshi joins Polymarket in sweeping user bans to head off insider trading
