The sanctioned candidates include one Senate hopeful from Virginia and two congressional candidates from Texas and Minnesota, each fined and banned from Kalshi for five years.
Kalshi's actions come amid heightened scrutiny of prediction markets, with recent insider trading scandals involving soldiers and calls for stricter regulation from Congress and state authorities.
Both Kalshi and competitor Polymarket have updated their rules to curb insider trading, as lawmakers debate whether the Commodity Futures Trading Commission or states should regulate these markets.
Will new regulations kill the prediction market boom or make it safer for investors?
Are these platforms a financial tool or just a new form of illegal gambling?
With federal and state laws clashing, who really governs the future of betting?
Can prediction markets ever be truly fair if insiders always have an edge?
Should profiting from bets on war, death, or elections be legal at all?
How can national security be protected if spies can bet on secret operations?