Kalshi, a regulated prediction market platform, is throwing its weight behind a congressional bill that would force all prediction markets to use facial recognition for age verification. The legislation aims to keep minors off these platforms, but it also poses a challenge to decentralized markets that operate without central identity checks.
What the bill would require
The bill mandates that any platform offering prediction market contracts must verify users' ages using facial recognition technology. That means scanning a user's face and comparing it to a government-issued ID. The requirement would apply to both centralized platforms like Kalshi and decentralized protocols that currently rely on self-reported age or no checks at all.
Why Kalshi is backing it
Kalshi already uses identity verification for its users, including age checks. The company says a federal standard would create a level playing field. Without it, platforms that skip verification can attract users who are underage or located in restricted jurisdictions. Kalshi's support suggests the company sees the bill as a way to legitimize the industry and protect its own compliance investments.
The challenge for decentralized platforms
Decentralized prediction markets, which run on blockchain smart contracts, often have no central operator to enforce identity checks. Facial recognition would require users to submit biometric data to a third party, undermining the pseudonymity that draws many to these platforms. The bill could force them to either add a verification layer or face legal hurdles in the U.S.
Child protection as the driving goal
Lawmakers behind the bill have framed it as a child safety measure. Prediction markets can involve real money and speculative bets, and there is concern that minors could gamble or be exposed to inappropriate content. Facial recognition age checks are already used by some social media platforms and online gambling sites, but applying them to prediction markets would be a first.
What happens next
The bill has been introduced in Congress but has not yet moved through committee. Its prospects are uncertain, especially given privacy concerns around biometric data collection. Kalshi's endorsement gives it a boost from a major industry player, but opposition from decentralized advocates and privacy groups is likely. The coming months will show whether the bill gains traction or stalls.
