Bipartisan Senators Question Kalshi and Polymarket Controls on Election Contracts

Sens. Elizabeth Warren (D-Mass.) and John Curtis (R-Utah) have written to Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan to request details on steps taken to block insider trading, market manipulation, and wagers based on material nonpublic information in election-related prediction markets. The letter arrives with midterm elections days away and focuses on event contracts tied to candidates and races.

The senators cited multiple examples of candidates wagering on their own races through Kalshi in 2025 and 2026. They referenced alleged market manipulation on Polymarket during the 2024 presidential election and a CFTC-described 2025 case in which a candidate traded on his own candidacy. That activity surfaced through social media videos before Kalshi issued a penalty and suspension.

“These examples raise critical questions about how many election-related transactions have escaped detection,” the senators wrote. The letter states that “Kalshi’s own enforcement record demonstrates the problem with event contracts referencing elections and political candidates.” It demands a written response by Tuesday listing past prevention measures, referrals to the CFTC, instances of insider trading referred, and current safeguards. The senators closed with direct skepticism: “We remain skeptical that your companies can sufficiently police these event contracts with effective scrutiny and meaningful accountability.”

Kalshi Enforcement Action Against Mark Moran

Former Virginia Democratic Senate candidate Mark Moran described his experience with Kalshi on the Indian Gaming Association’s New Normal podcast. Moran placed a $100 bet on himself after asking Kalshi’s political markets team in November 2025 to list his name on a prospective-candidates market, which the platform added within a day. He registered with his driver’s license yet was permitted to buy the contract.

Kalshi initially proposed a one-year suspension and $800 fine. After Moran declined to issue a public statement, the penalties rose to a five-year ban and $6,229.30 fine. According to the enforcement notice, on January 27, 2026, Moran placed two trades in the market and promoted it on social media, violating Rule 5.17(z). The next day he acknowledged the trades were improper in a call with compliance and legal staff but refused settlement and stopped responding.

Moran questioned why the platform allowed the bets, asking verbatim, “I had to register with my own driver’s license, put my name to this, yet I was allowed to then bet. Why is this happening?” He also objected to Kalshi’s demand that he publicly acknowledge the enforcement action.

Limits of Platform Self-Policing

The letter and Moran matter together show Congress testing whether prediction market operators can credibly supervise election contracts without external mandates. Clearer CFTC guidance or filing obligations may follow if responses fail to satisfy the bipartisan concerns.