Kalshi Hires a Watchdog to Keep Prediction Market Whales From Eating Their Own Homework 🐋

Kalshi, the federally regulated prediction market platform, has partnered with compliance technology provider Comply to roll out enhanced monitoring tools aimed at curbing insider trading on its venue, according to a CNBC report. The integration is designed to help enterprise clients track employee trading activity across event-based contracts as institutional interest in the sector accelerates.

The collaboration comes as more financial firms evaluate prediction markets for hedging and sentiment analysis, while regulators continue to scrutinize the fast-growing industry. Kalshi said stronger surveillance infrastructure is intended to improve transparency and encourage broader institutional participation, framing compliance as a prerequisite rather than a cost center.

Founded in 2018, Kalshi operates under oversight from the Commodity Futures Trading Commission and offers contracts on outcomes ranging from economic data prints to sports results and political events. The platform has previously secured funding from venture firms including Sequoia Capital, Andreessen Horowitz, and Paradigm, and has explored dedicated institutional products such as its reported work on sports-related offerings with media partners.

The push into enterprise compliance arrives alongside ongoing legal and regulatory pressure on the wider event-contracts space. Rival Polymarket drew attention earlier this year after reports surfaced that its founder was approached about purchasing the U.S. operations of derivatives exchange FTX, while Kalshi itself has faced state-level challenges over sports contracts in Nevada and New Jersey. The company has argued in court filings that its products are swaps subject to CFTC jurisdiction, not state-defined gaming.

Kalshi executives have positioned surveillance upgrades as central to winning over asset managers, hedge funds, and corporate treasuries that require robust anti-manipulation controls before allocating capital. By embedding monitoring tools directly into its platform through Comply, the company is betting that compliance optics, not just market selection, will determine which prediction venue captures the next wave of institutional flow.