Kalshi executives: Insider trading is not unique to prediction markets and requires sophisticated solutions.

John Wang, Head of Crypto at Kalshi, responded to the insider trading controversy surrounding prediction markets on X, stating: “I think this is a very important issue, but it doesn't only exist in prediction markets. The stock market is essentially a prediction market for a company's future performance, and it has been exploring and iterating on the line between ‘legitimate information advantage’ and ‘illegal use of material non-public information’ for a long time. The role of regulation is to find this balance. Like the stock market, insider trading is a complex problem that requires sophisticated solutions, but it is not insurmountable. I also agree that when operating at scale, introducing mechanisms such as KYC and market monitoring is essential to help prevent insider trading. So we have been doing this at Kalshi from day one.”