PANews reported on April 23 that, according to The Block, New York Governor Kathy Hochul signed an executive order prohibiting state employees from using insider information to place bets in prediction markets. Hochul cited the "recent surge in prediction markets" in the executive order, prohibiting state employees from using non-public information obtained in the course of their duties to profit from or assist others in profiting from prediction markets. Illinois Governor JB Pritzker also issued a similar executive order on Tuesday.

Meanwhile, Kalshi stated that he had handled three insider cases involving candidates self-nomincing, fining and suspending them. The penalized candidates included Minnesota Senator Matt Klein, Texas Representative candidate Ezekiel Enriquez, and Virginia Senator Mark Moran.