Shutterstock(US:SSTK) Benzinga·2026-02-05 20:31Core Viewpoint - Kalshi CEO Tarek Mansour emphasizes the importance of preventing insider trading in prediction markets, arguing that it undermines trust and fairness, similar to stock markets where insider trading is prohibited [1][2]. Group 1: Insider Trading and Market Integrity - Mansour asserts that insider information can lead to more accurate prediction markets, but he counters this by highlighting that such practices erode trust, which is essential for the long-term health of an exchange [1][2]. - Kalshi has conducted over 200 investigations in the past year, resulting in account freezes and over a dozen active cases, some of which have been referred to law enforcement [2][3]. Group 2: Compliance and Strategic Enhancements - To strengthen its compliance framework, Kalshi has made five major strategic hires, including Daniel Taylor from the Wharton Forensic Analytics Lab and Brian Nelson, former Under Secretary of the Treasury for Terrorism and Financial Intelligence [4][5]. - An independent committee will provide quarterly reports on market integrity, and Kalshi is integrating Solidus Labs for advanced behavior monitoring tools [5]. Group 3: Regulatory Context and Industry Comparison - Kalshi operates under CFTC regulation, contrasting with many offshore prediction markets that lack U.S. oversight, which is why Mansour challenges the notion that insider trading is merely a form of faster price discovery [6]. - The debate on insider trading has been highlighted by contrasting views from other platforms, such as Polymarket, which has a more ambiguous stance on insider activity [7][8].