Kalshi, the CFTC-regulated prediction market operator, has partnered with the compliance vendor StarCompliance to give financial firms a way to track employee trading on the platform in real time.

Prediction markets are facing mounting scrutiny from federal regulators and Congress over insider trading risks, but now compliance teams can flag suspicious trades as they happen, according to Kalshi’s announcement of its StarCompliance arrangement.

What insider trading problems has Kalshi faced? 

The prediction market platform Kalshi has entered into a partnership with compliance company StarCompliance in order to allow financial firms to track their employees’ trades on the platform in real time.

The partnership means that employees at participating firms will link their Kalshi accounts to the monitoring system, allowing compliance teams to see trades as they happen and flag any that look suspicious. It works much like how employers already monitor staff trading in stocks and shares.

Kelvin Dickenson, StarCompliance’s chief product officer, said the system might eventually require employees to get approval before they place any trades. 

Max Crowley, Kalshi’s VP of business development, revealed that the partnership was born from talks with a New York hedge fund. The fund wanted to use Kalshi but could not join without StarCompliance compatibility. Kalshi hopes the new system will attract big financial institutions that need strong compliance checks before they can take part. 

Leading up to this partnership, Kalshi has dealt with several insider trading cases, including candidates betting on their own elections.

In April, the company caught three congressional candidates who had placed bets on their own election races. The candidates include Mark Moran, a Virginia Senate candidate, who bet on himself and was fined $6,229.30 and handed a five-year ban. Matt Klein, a Minnesota House candidate, was fined $540 with a five-year ban, while Ezekiel Enriquez, a Texas House candidate, was fined $784 with a five-year ban. 

Moran said he bet on himself because he “wanted to get caught” to draw attention to the platform, while Klein said he bet out of curiosity and paid the penalty. The company now employs a roughly 20-person surveillance team and uses KYC checks to screen out government officials.

During the first three months of 2026, Kalshi opened more than 150 insider trading investigations despite automated tools blocking over 100 possible insider trades before they happened. The company referred more than 20 cases to law enforcement. 

The problems are not just on Kalshi. A Google employee was charged with insider trading for using company information to bet on Polymarket, a rival platform. A U.S. special forces soldier also allegedly used classified information to bet on Polymarket about the capture of Venezuela’s president.

Why is Congress investigating prediction markets? 

House Oversight Committee Chair James Comer launched a formal probe into both Kalshi and Polymarket in May 2026. The committee sent document requests to the CEOs of both platforms, seeking records on identity verification, geographic restrictions, and surveillance systems.

Cryptopolitan previously reported that a New York Times investigation identified more than 80 Polymarket users who placed suspiciously timed wagers ahead of undisclosed U.S.-Israeli military operations against Iran. Comer referenced this investigation in his probe.

Kalshi’s executives have publicly backed legislation that would ban members of Congress from trading on prediction markets.

Last week, Kalshi introduced a new requirement for traders to disclose their employer when participating in markets that the platform deems to carry elevated insider trading risk. The company gave the example of a contract on whether OpenAI or Anthropic would go public first as the kind of market where workplace affiliation becomes important.

JPMorgan has warned employees to be cautious about prediction market trading, while the credit-ratings agency KBRA banned employee participation outright.

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