Kalshi partners with Comply to expand prediction market trade surveillance

Kalshi is expanding its institutional compliance offering through a partnership with compliance technology provider Comply that will let financial firms monitor employee trading in Kalshi prediction markets through existing surveillance systems. The integration is designed to help employers detect possible trading based on material non-public information, enforce internal restrictions on contracts tied to events employees could influence, and place event contracts alongside assets such as stocks, bonds and cryptocurrencies already covered by workplace trading controls. Kalshi said the tools will also extend to its planned perpetual futures products once available. The move comes as the company argues that stronger compliance can make prediction markets more usable for banks, asset managers and other regulated firms, even as broader legal uncertainty persists over whether some event contracts are federally regulated derivatives or fall under state gambling laws. New York Attorney General Letitia James sued Kalshi on July 31, seeking at least $36 billion in damages, penalties and other relief. Kalshi later removed the case to the U.S. District Court for the Southern District of New York, after which New York Supreme Court Justice Melissa A. Crane treated the state's preliminary injunction request as moot because the case was no longer before her court. The surveillance push follows a July 31 CFTC order involving former U.S. Representative George Santos. Regulators said Santos made misleading public statements while holding contracts tied to whether he would attend President Donald Trump's State of the Union address. Under the order, Santos agreed to return $17,569.98 in gains, pay a $17,500 civil penalty and accept a three-year ban from trading through CFTC-registered entities, without admitting or denying the findings.