Prediction markets face regulation push after political and sports figures barred from trading.

Kalshi and Polymarket have tightened insider trading rules, barring political candidates, athletes, and individuals with confidential information from trading on related contracts amid bipartisan congressional efforts to ban sports-related prediction markets. The proposed "Prediction Markets are Gambling Act" threatens the industry’s growth, especially as sports betting has driven recent expansion. The Commodity Futures Trading Commission, led by a Trump-aligned chairman, supports federal oversight, potentially overriding state bans. Meanwhile, Donald Trump Jr. has financial ties to Polymarket and advises Kalshi, raising concerns about conflicts of interest. Stock prices for major sports betting firms rose after the legislation was introduced.