Kalshi executive: Insider trading is not unique to prediction markets and requires precise solutions to address

Odaily reported that John Wang, Head of Crypto at Kalshi, responded on X to the controversy surrounding insider trading in prediction markets, stating: “I think this is a very important issue, but it does not exist only in prediction markets. The stock market is essentially also a prediction market about companies’ future performance, and over time there has been extensive exploration and iteration regarding the boundary between ‘legitimate informational advantage’ and ‘illegal use of material non-public information’. The role of regulation is to find this balance. Just like in the stock market, insider trading is a complex issue that requires sophisticated solutions, but it is not insurmountable. I also agree that, when operating at scale, introducing mechanisms such as KYC and market surveillance is very necessary and helps prevent insider trading. That’s why we have implemented such practices at Kalshi from day one.”