Kalshi, StarCompliance launch prediction-market monitor

Prediction market operator Kalshi and compliance software provider StarCompliance announced on Wednesday the launch of a monitoring platform for employee activity on prediction markets. The system flags trades by transaction size, trading patterns, market category and whether activity occurs during work hours. It offers a single interface for compliance teams to open investigations and retain audit records across onchain and offchain environments.

The new capability expands StarCompliance’s existing employee surveillance tools, which already track traditional securities and digital-asset trading, to include prediction market orders routed through Kalshi. Firms can use the platform to correlate employee roles and trading behavior with exposure to event contracts and to integrate those records into established compliance workflows.

StarCompliance framed the product as a response to the risk that employees at financial firms could use material non-public information to trade event contracts. The announcement comes days after a federal judge set a December trial date for U.S. Army Master Sgt. Gannon Ken Van Dyke, whom prosecutors allege used non-public details of a military operation to profit more than $400,000 on a prediction market platform. Van Dyke has pleaded not guilty to the charges.

Prediction markets are facing legal and regulatory challenges at the state level. At least 11 states have taken actions such as cease-and-desist orders or temporary blocks, and disputes focus on whether event contracts fall under state gambling laws or should be regulated as federally supervised derivatives by the Commodity Futures Trading Commission. Earlier this year Nevada temporarily halted Kalshi’s operations and Arizona accused the company of operating an illegal gambling business. Kalshi sued Minnesota after the state enacted a ban on prediction markets, and the CFTC has joined litigation in Rhode Island and sued New Mexico officials in a case the agency filed last week.

Representative James Comer has requested information from Kalshi and a rival operator about their handling of potential insider trading after reports of suspiciously timed trades linked to U.S. military actions. Industry advocates expect the jurisdictional disputes between state regulators and the CFTC to be litigated for years.

Cody Carbone, chief executive of the Digital Chamber, told a panel at a conference in Mexico City that the fight over regulation is likely to be decided in the courts. “It’s going to be a very heated battle that the courts are going to have to weigh in on,” he said.

Kalshi and StarCompliance did not provide client names or detailed deployment schedules in the announcement. The product is aimed at giving compliance teams a formalized way to detect and document employee exposure to prediction-market trading as scrutiny of the sector increases.