Overview
- The CFTC formed an Innovation Advisory Committee in early 2026 and invited executives from regulated and crypto‑native platforms, including Kalshi and Polymarket, to help shape policy on event contracts.
- Rep. Ritchie Torres introduced the Public Integrity in Financial Prediction Markets Act to restrict trading by government officials with material nonpublic information, and the bill remains at an early stage.
- Kalshi CEO Tarek Mansour voiced support for MNPI restrictions and said the exchange enforces bans modeled on NYSE and Nasdaq, including surveillance for manipulation and insider misuse.
- Legal analyses urge platforms to adopt exchange‑grade controls such as formal MNPI regimes, surveillance, KYC/AML, fund segregation, and capital safeguards to scale under U.S. oversight.
- Despite rising volumes, liquidity remains thin even as professional firms like DRW, Susquehanna International Group, and Jump Trading expand into the space, and regulatory fragmentation persists between CFTC supervision and state gambling challenges.