U.S regulated prediction market Kalshi has taken disciplinary action against three congressional candidates for violating its core market integrity rules. The move highlights the platform’s commitment to enforcing strict guardrails against political insider trading as event-based markets continue to gain mainstream traction.
According to official disciplinary notices, Ezekiel Enriquez, Mark Moran, and Matt Klein were found to have breached Kalshi Rule 5.17(z). This rule strictly prohibits individuals with influence over an event’s outcome from participating in related markets.
The three cases
While the actual wagers were small, Kalshi applied the rules rigorously to demonstrate its self-policing capabilities to federal regulators.
The disciplinary notice for Ezekiel Enriquez states that he purchased less than $100 worth of contracts tied to his own campaign for Texas’ 21st Congressional District. The case was settled on April 10, 2026, with Enriquez cooperating with the investigation and accepting penalties, including a five-year trading ban and a $784.20 fine.
State senator Matt Klein traded $50 tied to the Minnesota Republican primary race for the state’s 2nd Congressional District, where he was also a candidate. He apologized for the “mistake” on social media and reached a settlement, resulting in a five-year trading ban and a $539.85 penalty. Notably, Klein has previously supported state legislation to ban prediction markets.
Independent Senate candidate Mark Moran placed trades in late November 2025 and additional trades in January 2026 after announcing his run for U.S. Senator of Virginia, while also promoting the market. Unlike the others, Moran refused to settle with the exchange and was handed a five-year ban and a $6,229.30 penalty. Interestingly, Moran also took to X to claim that the bet was a “stunt” designed to expose the platform’s danger.
Market integrity in focus
The enforcement actions underscore the platform’s efforts to enforce strict compliance standards as prediction markets gain traction, particularly in politically sensitive events. Critics, including U.S. Rep. Mike Levin (D-CA), have characterized the penalties as mere “parking tickets.” However, Kalshi maintains that regardless of trade size, any individual who can influence a market will be identified and punished.
The crackdown serves as a landmark test of Kalshi’s internal monitoring systems, proving its ability to flag and remove political insiders in real-time.
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