Prediction markets are having a moment, and with that comes the inevitable question: are people cheating? Kalshi CEO Tarek Mansour wants everyone to know his answer is a hard no, at least on his platform.

Mansour threw his support behind the Public Integrity in Financial Prediction Markets Act of 2026 this week, legislation proposed by U.S. Representative Ritchie Torres (D-NY) that would formally ban insider trading on political and policy prediction markets. In a LinkedIn post Wednesday, Mansour's message was simple: "Why? Because we already implement it."

Separating the Regulated from the Wild West

The real target here isn't just establishing rules, it's drawing a bright line between platforms like Kalshi that operate under U.S. regulation and offshore prediction markets that don't. Mansour didn't mince words about the confusion in recent coverage.

"This should be obvious, but some recent reporting has been conflating regulated prediction markets with unregulated, offshore prediction markets. What non-American, unregulated platforms do has no relationship to what regulated, American platforms do," he said.

It's a fair point. Kalshi operates like a traditional financial exchange with surveillance and compliance measures. Offshore platforms? Not so much.

Why Washington Is Paying Attention

The push for legislation didn't come out of nowhere. Reports have surfaced of traders making suspiciously well-timed bets on politically sensitive events. One Polymarket user walked away with over $436,000 after correctly predicting Venezuelan President Nicolás Maduro's ousting just hours before it happened. That kind of timing raises eyebrows.

Then there's the broader concern about conflicts of interest. Rep. Torres has argued that allowing government officials to trade on markets tied to their own policy decisions erodes public trust. It's hard to disagree when you're betting on outcomes you might directly influence.

The bill is still early-stage, but it reflects growing momentum among lawmakers to impose transparency and accountability on these fast-expanding markets. And they are expanding fast: Kalshi hit a record $6.26 billion in December trading volume, while Polymarket saw $2.28 billion, according to The Block's dashboard. With that kind of growth comes scrutiny, and platforms that play by the rules are eager to make sure everyone knows which side of the line they're on.