CFTC warns prediction market Kalshi of imminent charges, source says
FILE PHOTO: Kalshi logo appears in this illustration taken April 22, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
WASHINGTON, Nov 10 : The US Commodity Futures Trading Commission has warned prediction market startup Kalshi of imminent charges in a probe into whether it properly notified the agency about dozens of new products, a person familiar with the matter said on Tuesday.
The regulator's notification to the company suggests the charges could come soon, said the person who requested anonymity because the decision is not yet public.
Kalshi in a statement said the CFTC's warning "is about a procedural error involving the submission of a handful of contracts, many of which weren't live."
"We are already addressing the issue," the company added.
Guess Word Crack the word, one row at a time
Buzzword Create words using the given letters
Mini Sudoku Tiny puzzle, mighty brain teaser
Mini Crossword Small grid, big challenge
Word Search Spot as many words as you can
The CFTC did not immediately respond to a Reuters request for comment.
Kalshi has rapidly expanded its product offerings since securing a legal victory over the CFTC in 2024, allowing it to list diverse event-based derivatives. However, critics of prediction-market platforms such as Kalshi and peer Polymarket argue that the products resemble gambling and could encourage addictive behavior.
In recent months, Kalshi has pursued a broader strategy of competing with traditional exchange operators such as CME Group and New York Stock Exchange parent Intercontinental Exchange by expanding beyond event contracts into a range of asset classes through perpetual futures.
Perpetual futures, often called "perps," are derivative contracts with no expiry date, allowing traders to hold positions indefinitely without rolling them over. They can also involve high leverage, increasing both potential gains and losses.
The company raised $1 billion at a $40 billion valuation late last month, co-led by Sequoia and Wellington, underscoring the growing popularity of such markets and strong institutional interest.
Politico reported about the imminent charges earlier in the day.
Source: Read original story
Comments ()