Prediction market platform Kalshi has announced a significant expansion of its market surveillance and enforcement framework, introducing an independent surveillance advisory committee and new trading surveillance partnerships. These initiatives are designed to strengthen Kalshi’s compliance programs and reinforce its standing as a federally regulated prediction market.
Kalshi, founded in 2018, established prediction markets as a new financial asset class. The company spent its initial years securing regulatory approval from the Commodity Futures Trading Commission (CFTC) before launching any products, prioritizing regulation for trust and legitimacy. As a federally regulated entity, Kalshi prohibits market manipulation and insider trading, enforces limits on listed market types, conducts Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks on all users, and publicly reports all trades to the CFTC daily. Kalshi has also developed custom prediction market trade surveillance and enforcement systems comparable to those utilized in the stock market.
Further steps to enhance platform integrity and user safety include the engagement of Brian Nelson, former Under Secretary of the Treasury for Terrorism and Financial Intelligence and a partner at Cooley, to advise on market integrity, trading surveillance, and financial compliance. Additionally, Kalshi has formed an independent Surveillance Advisory Committee. This committee includes Lisa Pinheiro, Managing Principal at Analysis Group, who specializes in data-driven analysis of market manipulation, and Daniel Taylor, Director of the Wharton Forensic Analytics Lab and an expert in insider trading and fraud prediction. The committee will provide quarterly analysis to Kalshi’s outside counsel and will publish statistics on flagged trades, investigations, and disciplinary proceedings.
Kalshi has also partnered with Solidus Labs, a company that provides trade surveillance technology to detect, investigate, and address market abuse. Kalshi will integrate the Solidus platform to augment its existing in-house systems, offering institutional-grade protection across its more than 4,000 markets. Solidus Labs, founded in 2018 by Goldman Sachs veterans, specializes in agentic-based compliance for trade surveillance and risk monitoring, utilizing its AI-powered HALO platform. Solidus’s collaboration with Kalshi will also involve Daniel Taylor.
In a related development, Kalshi lawyer Robert DeNault has been appointed Head of Enforcement. In this role, DeNault will coordinate with the Surveillance Advisory Committee, Kalshi’s surveillance partners, and the company’s Compliance Department to prevent and detect insider trading and market manipulation. DeNault joined Kalshi at the end of 2025, having previously advised clients on financial and securities fraud investigations and regulatory matters at White & Case LLP.
To further inform consumers about protection measures and regulatory oversight, Kalshi has created Responsible Trading and Market Integrity hubs on its website.
Asaf Meir, Founder and CEO of Solidus Labs, stated, “At Solidus, we believe that a platform built to trade on the future deserves a trade surveillance partner that isn’t stuck in the past. By deploying Solidus’ agentic trade surveillance and compliance hub, Kalshi is demonstrating once again its highest commitment to consumer investor protection and market integrity.” Daniel Taylor, Director of the Wharton Forensic Analytics Lab, added, “Market integrity is one of the pillars of Kalshi’s growth strategy. I am pleased to advise Kalshi on further processes and safeguards to detect and deter insider trading and market manipulation.” Robert DeNault, Kalshi’s Head of Enforcement, commented, “Kalshi was the first to regulate prediction markets in America. We’re now bringing on some of the industry’s leading surveillance experts to build and guide the future of prediction market compliance.”
