Polymarket updated its trading rules and detailed how it monitors activity across its DeFi platform and regulated exchange, while Kalshi rolled out technological filters to screen out insiders before trades are executed. Both moves come amid growing regulatory scrutiny of U.S. prediction markets.
Earlier this month, the CFTC tightened its approach to the sector, while new initiatives aimed at tackling insider trading emerged in Congress.
Polymarket Introduces New Control Tools And Rules
Polymarket updated the user agreement for its DeFi platform and the rulebook of its U.S. exchange, spelling out bans on insider trading and market manipulation. The documents define three categories of violations: trades based on stolen confidential information, the use of illicit tips, and trading by individuals who can influence outcomes.
The company also explained how these rules work in practice and launched dedicated pages with tools to report suspicious trades. Any activity that undermines fair trading will be banned.
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On the DeFi platform, enforcement relies on on-chain transparency: all trades are executed on the Polygon network, and positions are publicly visible. When abnormal activity is detected, the platform reviews it, blocks wallets, and shares data with law enforcement.
Polymarket US uses a three-tier monitoring system, including third-party analytics firms, internal real-time surveillance, and an agreement with the National Futures Association, which tracks violations and imposes sanctions ranging from fines to trading bans.
Kalshi Implements Automatic Blocks And Filters
Kalshi focused on stopping violations before trades happen. The platform introduced tools that block politicians, candidates, and associated individuals from trading contracts related to their own campaigns.
A similar approach is applied to sports markets: athletes, referees, and league staff are prohibited from trading contracts tied to competitions in which they are involved. Previously, such cases were identified after the fact; now, the system filters them out in advance using internal lists and partner data.
The platform also added a whistleblower mechanism directly into the trading interface, allowing users to report suspicious activity.
“Filters do not account for every scenario, so we are strengthening the combination of automated controls and community involvement,” Kalshi representatives acknowledged.