Kalshi CEO Tarek Mansour told CNBC he backs insider trading bans for Congress members and administration officials. Democrats won both chambers of Congress this week, and some in the party want election contracts banned outright.
The Senate already barred its own members and staff in April. Meanwhile, Kalshi alone carried about $1.3 billion in midterm wagers by Monday, per a Washington Post analysis.
Will Kalshi’s Insider Trading Pledge Head Off Tougher Rules?
Kalshi, regulated by the Commodity Futures Trading Commission (CFTC), lets users trade contracts that pay $1 if an event occurs.
CNBC disclosed during the interview that it has a commercial relationship with Kalshi, including customer acquisition and a minority investment.
Mansour said Kalshi has policed insider trading since its 2018 founding.
“If somebody has exclusive rights and privilege in a competition then the competition is fake.”
Tarek Mansour, CEO of Kalshi, on CNBC
He called for strict rules barring Congress, the administration, and others from trading markets they can influence.
He also cited former Rep. George Santos, ordered by the CFTC to pay about $35,000 over bets against himself.
CNBC’s hosts raised Rahm Emanuel’s call for an ethics bill covering stock and prediction market trading. Emanuel is a former Chicago mayor.
Kalshi also opened a probe in October into Trump press secretary bets placed before the pick became public.
Will a Narrow Fix Satisfy Democrats Who Want Election Bets Gone?
Sen. Jeff Merkley, D-Ore., and Rep. Jamie Raskin, D-Md., introduced the STOP Corrupt Bets Act earlier this year.
In contrast, the bill would ban event contracts on elections, sports, military actions, and most government actions.
The same analysis counted nearly $1.9 billion wagered on the midterms across Kalshi and rival Polymarket.
Sen. Chris Murphy, D-Conn., has also urged a ban on election trades. Rep. Blake Moore, R-Utah, has meanwhile introduced bipartisan legislation covering election outcomes.
Which approach Congress favors will decide whether US-regulated platforms can keep listing election contracts.
The outcome matters for Kalshi, which closed a $1 billion round at a $40 billion valuation in late October.
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