A U.S. regulator overseeing platforms including Kalshi and Polymarket has indicated that parts of the prediction market industry may be falling into poor compliance habits, raising the risk of market abuse. The warning suggests regulators are focused not just on the growth of event-based trading venues, but on whether their surveillance, controls and rulebooks are keeping pace. For platforms that let users trade on the outcomes of real-world events, compliance systems are central to preventing manipulation, insider activity and other misconduct.