Kalshi CEO Tarek Mansour discussed the challenges of insider trading in prediction markets during a CNBC interview. The conversation arose after Kalshi experienced a significant trading day during the Super Bowl, with users betting on various outcomes, including a $113 million market on Bad Bunny's halftime show song choice. Mansour highlighted the complexity of defining insider trading in such contexts, especially when nonmaterial, nonpublic information is involved. As prediction markets like Kalshi and Polymarket grow, the need to delineate insider trading boundaries becomes crucial. These platforms have seen over $6 billion in weekly trading volume, with sports betting comprising a significant portion. Kalshi has implemented measures to prevent insider trading, including a surveillance team and an independent audit committee. Recently, a University of Tennessee student was dismissed for potential insider trading on Kalshi, underscoring the platform's vigilance.