The Commodity Futures Trading Commission has settled with Gabriel Perez, Donald Trump’s teleprompter operator, over alleged insider trading on Kalshi. Perez avoids prison and faces a trading ban, but the penalty is less than his total profits
The Commodity Futures Trading Commission (CFTC) has finalized a settlement with Gabriel Perez, the teleprompter operator for U.S. President Donald Trump, following allegations of insider trading on the event-contract platform Kalshi. The case centers on Perez’s use of advance access to presidential speech texts to place at least 43 trades on Kalshi’s “mention markets,” where contracts pay out based on whether specific words or phrases are spoken in public remarks.
Details of the CFTC Settlement
The CFTC announced the settlement late on a Friday, coinciding with unrelated news about Kalshi’s legal challenges. Under the terms, Perez will not serve prison time. Instead, he agreed to a three-year ban from trading event contracts, the forfeiture of $107,539 in profits, and a $65,000 civil penalty. The CFTC described the penalty as a “substantial discount” due to Perez’s cooperation during the investigation. Notably, Perez did not admit to any findings of wrongdoing as part of the deal.
How the Insider Trading Occurred
According to the CFTC’s order, Perez leveraged his early access to the president’s prepared remarks to inform his trading decisions on Kalshi. He would review the speech text in advance and place “Yes” or “No” trades depending on whether a targeted word or phrase appeared in the draft. The order details at least 14 separate “Trump mention markets” where Perez executed 43 trades between December 2025 and February 2026. In one instance, Perez reportedly adjusted his position after observing the president deviate from the prepared script during a live event.
Comparison With Other CFTC Enforcement Actions
The outcome for Perez stands out when compared to other recent CFTC settlements involving political figures. In July, former U.S. Congressman George Santos settled with the CFTC for a $35,000 fine—double his alleged profit from manipulating a single Kalshi market about his attendance at the 2026 State of the Union. Both Perez and Santos received three-year trading bans, but Perez’s case involved a larger number of trades and a higher profit total. The CFTC cited Perez’s “exemplary cooperation” as a factor in reducing his penalty, but did not provide a public statement from Chairman Michael Selig, who has previously commented on prediction market enforcement cases.
The CFTC’s handling of these cases highlights the regulator’s discretion in setting penalties, especially when cooperation is involved. The agency also acknowledged assistance from KalshiEX, the operator of the affected platform, in its investigation.
Event contracts, such as those offered by Kalshi, are regulated by the CFTC as a distinct category from traditional sports betting or casino gaming. These contracts allow participants to trade on the outcome of real-world events, including political statements or occurrences. The CFTC’s oversight focuses on market integrity and the prevention of unfair advantages, such as insider access to nonpublic information. The Perez case underscores the importance of these rules and the consequences for individuals who misuse privileged information in regulated event markets.
