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StarCompliance, an intelligence and automation platform for employee and firm compliance, has announced a partnership with Kalshi to launch what the companies call the financial industry’s first enterprise-grade global compliance solution for prediction markets. Announced June 17, the tool will integrate into StarCompliance’s existing platform and monitor employee participation in prediction markets.
The launch comes as regulators and lawmakers intensify their focus on insider trading risks tied to event contracts — financial instruments that let traders bet on outcomes from elections to sports to weather.
A new blind spot for compliance teams
The product plugs into StarCompliance’s existing digital asset and securities compliance framework, giving firms one platform to track activity tied to material nonpublic information, or MNPI — a risk traditional compliance programs weren’t built to catch.
“Prediction markets represent a rapidly emerging area of employee conduct and MNPI risk,” said Kelvin Dickenson, chief product officer at StarCompliance. “Firms need surveillance capabilities that adapt across jurisdictions and provide meaningful visibility into both on-chain and off-chain prediction market activity.”
The tool offers:
- Automated surveillance across on- and off-chain activity
- Configurable, firm-defined risk alerts
- Centralized case management for investigations and audits
- Monitoring tied to volume, trading patterns and work-hour activity
- Oversight aligned with firm policy and regulation
Max Crowley, Kalshi’s vice president of business development, said the deal reflects prediction markets’ growing role in finance. “We’ve always been compliance-obsessed at Kalshi, and we’re thrilled to partner with Star to bring enterprise-grade oversight and expertise to this emerging market category,” he said in a StarCompliance press release.
Insider trading enforcement hits prediction markets
Kalshi‘s volume hit a record $14.81 billion in April and the company closed a $22 billion funding round in May, but growth has been matched by legal pressure. That month, the CFTC filed its first-ever insider trading complaint involving event contracts, accusing an active-duty soldier of trading on classified military information. Kalshi separately disciplined three political candidates for trading on their own campaigns.
Since January, Congress has introduced more than a dozen bills targeting the industry, and Democratic senators led by Jeff Merkley have pressed the CFTC to curb insider trading and limit certain contracts. The CFTC itself proposed a rule June 10 that would let it bar certain sports-related contracts and formalize how it evaluates “public interest.” Comments are due July 27.
The stakes for financial firms as rules stay in flux
Enforcement of insider trading rules on prediction markets specifically remains, in the CFTC’s own words, “an open question,” according to the Congressional Research Service — raising the stakes for compliance teams as oversight evolves.
StarCompliance and Kalshi plan a webinar, “Product Spotlight: Launching Prediction Markets Monitoring,” on July 16 at 10 a.m. ET.
