Bankless · Tuesday, September 1, 2026
John Wang explained Kalshi's robust approach to preventing and enforcing against insider trading, viewing it as essential for market integrity and scalability. He emphasized that while fair information gathering is encouraged, illicit insider trading deters liquidity providers and ultimately harms the market, preventing it from reaching its full potential.
“We have a ton of infrastructure around preventing insider trading from even happening in the first place, but also surveilling the markets and tracking it when it does happen.”
“But the greater reason is actually like a market structure reason, which is like once you have a lot of toxic flow of like informed traders. coming in, market makers aren't going to quote anymore. Liquidity providers are going to pull their quotes. And therefore, no one will have a liquid market to trade, Yanks. And then you won't have a signal anyways.”
“So you just have to draw this line against insider trading if you want to have market integrity and healthy markets that thrive in scale.”