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Kalshi, the largest CFTC-regulated prediction market in the US, is borrowing from Wall Street’s playbook to prove it belongs in the same conversation as traditional exchanges. The platform has been systematically upgrading its trade surveillance infrastructure by modeling its systems after those used by Nasdaq and the NYSE, a move designed to reassure both regulators and the institutional money sitting on the sidelines.
The effort comes at a pivotal moment for the company. Kalshi is navigating a lawsuit exceeding $36 billion while simultaneously trying to convince sophisticated investors that prediction markets are more than a novelty.
The surveillance stack taking shape
Kalshi’s compliance buildout has been methodical. In February 2026, the company partnered with Solidus Labs, a firm known for its crypto-market surveillance expertise, to strengthen its ability to detect market abuse.
Then in early August 2026, Kalshi added another layer by teaming up with Comply, a compliance provider that gives institutional clients the ability to track employee trading activities on the platform. This is the kind of tool that banks and hedge funds already use to monitor what their traders are doing on traditional exchanges.
Internally, the company has also deployed its own monitoring systems, including an alert tool called IC360. The combination of in-house technology and third-party solutions creates a multi-layered surveillance framework.
CEO Tarek Mansour has repeatedly pointed to Nasdaq as the benchmark for where Kalshi’s structural and surveillance standards need to be. Kalshi has recruited former Nasdaq surveillance personnel, and its job postings have listed familiarity with Nasdaq’s tools as a preferred qualification.
Why prediction markets need Wall Street-grade oversight
Prediction markets let users trade contracts on the outcomes of real-world events, from elections to weather patterns to sports results. Kalshi currently operates more than 4,000 event contracts spanning these categories and others.
Kalshi being the only fully CFTC-regulated prediction market gives it a compliance advantage over competitors, but regulation alone doesn’t prevent bad behavior.
What this means for the prediction market industry
By integrating tools like Comply, Kalshi is directly addressing institutional adoption barriers. Institutional compliance departments can now plug Kalshi into their existing monitoring workflows, treating it more like a traditional exchange than an exotic trading venue.
The Solidus Labs partnership also positions Kalshi at the intersection of traditional finance and crypto compliance. Solidus built its reputation monitoring digital asset markets, and applying that expertise to event contracts gives Kalshi access to detection algorithms developed for those trading environments.
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