Kalshi CEO Tarek Mansour has said federal regulators are likely to investigate fraud and insider trading in prediction markets as the sector expands, reported by Axios.
Speaking on “The Axios Show,” Mansour acknowledged that fast-growing platforms dealing with bets on politics, war, sports and entertainment could attract bad actors.
According to the report, Kalshi operates under oversight from the Commodity Futures Trading Commission, and Mansour expects enforcement action against insider trading within the next year. He emphasized that both exchanges and regulators must detect and punish misconduct to maintain credibility.
Exclusive: Kalshi CEO expects feds to probe "bad actors" on prediction markets https://t.co/JnttmvQ1nv
— Axios (@axios) April 7, 2026
The report said Kalshi has introduced safeguards, including restricting athletes from betting on their own games and political candidates from trading on their campaigns.
Meanwhile, the industry faces mounting legislative pressure, with some policymakers pushing to classify prediction markets as gambling. However, CFTC Chair Mike Selig, appointed under President Donald Trump, has signaled support for the sector and efforts to defend it from state-level restrictions.
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