CFTC warns Kalshi of possible charges over filings for dozens of new contracts
The Commodity Futures Trading Commission has warned prediction market operator Kalshi that it could soon face charges, Politico reports.
The agency is looking into whether Kalshi properly told it about dozens of new products, and its warning to the company suggests that charges could follow.
The probe centers in part on self-certification. Under that process, a regulated exchange can launch a new contract without the CFTC's approval in advance. Trading can begin as soon as the following business day after the exchange submits a certification that the contract complies with federal rules.
The potential charges come despite the CFTC's generally supportive stance toward prediction markets. Politico notes that under Chairman Michael Selig, the CFTC has sided with prediction markets in their fights with states that say they break gambling laws. Critics of Kalshi and its rival Polymarket say the products look like gambling.
Kalshi has expanded rapidly since winning a 2024 court ruling that overturned the CFTC's ban on its congressional election contracts, adding more products, including perpetual futures. It also recently raised $1B at a $40B valuation.
Kalshi spokesperson Elisabeth Diana said the warning "is about a procedural error involving the submission of a handful of contracts, many of which weren't live." She added: "We are already addressing the issue."
The CFTC did not respond to requests for comment right away.
Sources & Further Reading
- "Wall Street regulator poised to bring charges against prediction market giant Kalshi." Politico. November 10, 2026.
- "Self-Certification Filing Procedures." Commodity Futures Trading Commission.
- "23-3257 - KALSHIEX LLC v. COMMODITY FUTURES TRADING COMMISSION." GovInfo. September 12, 2024.
This article was drafted with the help of AI. Aubrey Wood fact-checked, edited and published the article and is responsible for its accuracy and quality. How we use AI
