Prediction Market Platforms Rush to Ban Insider Trading Amid Senate Legislation

Major prediction market platforms Kalshi and Polymarket have instituted new industry guardrails after two senators announced legislation to curb the sector. This rapid regulatory shift matters because it signals a tightening of financial oversight that could fundamentally alter how speculative betting on future events operates. The broader implication is a potential consolidation of power in traditional financial markets as decentralized prediction tools face existential legal threats.