CFTC investigates if Kalshi improperly self-certified event contracts
News of the probe comes after the CFTC ordered Kalshi to take down a sports-related "mention markets" back in August.
The US Commodity Futures Trading Commission (CFTC) has issued a warning to prediction markets operator Kalshi about possible charges, according to Politico. The regulator is investigating Kalshi's notifications of new products, citing a person familiar with the probe. The investigation has been ongoing for months, and the agency's direct communication to Kalshi indicates that charges may be forthcoming.
Kalshi spokesperson Elisabeth Diana confirmed that the issue stems from procedural errors with a small number of contracts, many of which were not live. She emphasized that the company is actively addressing the matter. This potential enforcement action unfolds as the CFTC strives to assert its exclusive jurisdiction over prediction markets, including challenging state regulations applicable to Kalshi.
Additionally, Kalshi is collaborating with Coinbase and four other entities in a separate legal dispute, seeking permission to file a brief supporting the CFTC's stance on perpetual futures tied to individual US stocks.
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- CFTC warns Kalshi of imminent charges over notification of contracts: Politico cointelegraph.com
- CFTC warns prediction market Kalshi of imminent charges, source says channelnewsasia.com
