Kalshi, a regulated prediction market platform, has announced the proactive implementation of new customer protection measures, aligning with provisions outlined in the bipartisan "Prediction Market Act of 2026" introduced by Senators Kirsten Gillibrand (D-NY) and Dave McCormick (R-PA). This move comes as the prediction market industry faces increased scrutiny regarding consumer safeguards and market integrity.
"Kalshi is proactively implementing customer protection measures outlined in the bipartisan prediction market bill introduced by Senators Gillibrand and McCormick before it passes," stated Kalshi CEO Tarek Mansour in a recent tweet. He further emphasized, "Free markets and safe markets are not mutually exclusive." The proposed legislation seeks to establish a comprehensive regulatory framework for prediction markets under the Commodity Futures Trading Commission (CFTC), aiming to prevent insider trading and protect retail investors.
The new measures from Kalshi focus on two key areas: mitigating unauthorized access by minors and enhancing responsible risk-taking for traders. To prevent minors from circumventing age verification, Kalshi is rolling out features such as Face ID by default, selfie requests for higher-risk individuals, and promoting two-factor authentication. Additionally, an "ID Check" feature will allow users to verify if someone is logging in under their identity.
To foster responsible trading, Kalshi is introducing "Inner Circle," a social feature enabling users to grant friends and family access to view their trading activity and receive real-time alerts. The platform will also implement a "Health Check" system, providing deposit limit recommendations based on trading behavior and proactively educating traders on controls, including personalized deposit limits and, in some cases, requiring proof of funds. These steps aim to address concerns about the rapid growth of retail participation in prediction markets.
The "Prediction Market Act of 2026" was introduced following a high-profile case involving a U.S. soldier accused of using insider knowledge to profit from prediction market bets. The bill aims to define event contracts, empower the CFTC to ban bets deemed "contrary to the public interest," and prohibit lawmakers and high-ranking government officials from owning event contracts. While Tarek Mansour has expressed support for the bill's objectives, he noted that Kalshi does not agree on every aspect of the proposed legislation.
