Kalshi Bans Athletes, Politicians from Trading on Its Markets
Kalshi announced a policy banning athletes and elected officials from participating on its markets, while Polymarket said it is strengthening rules aimed at preventing insider trading. The moves come as prediction markets draw increased attention from lawmakers and regulators, prompting platforms to impose stricter participant restrictions and compliance measures to reduce conflict-of-interest risks.
The changes matter because they signal the industry is moving to head off legal and political challenges before they escalate. Tighter eligibility and monitoring could improve market integrity but may also narrow the pool of participants and liquidity in certain contracts. Market operators and traders will be watching whether these measures satisfy regulators or prompt broader rulemaking that reshapes how prediction markets operate.