Kalshi, the prediction-market platform, is facing potential charges from the Commodity Futures Trading Commission (CFTC) after the regulator questioned whether the company properly notified it about dozens of new contracts. According to a report from Reuters, the CFTC warned Kalshi that “charges could come soon,” citing a person familiar with the matter. Neither the CFTC nor Kalshi immediately responded to requests for comment.
The warning comes as Kalshi continues to expand its role in financial and event-based markets, drawing increasing regulatory attention. In September, a federal appeals court rejected Kalshi’s argument that its sports contracts are swaps, a type of derivative under the CFTC’s jurisdiction. Following this, the CFTC submitted two new rules to the White House to clarify the regulatory status of prediction market contracts.
Kalshi, along with Coinbase Global Inc. (NASDAQ:COIN) and Kraken parent Payward, has also backed the CFTC in a federal legal fight over single-stock perpetual futures. The Manhattan-headquartered startup has attracted significant investor interest, with its valuation reaching approximately $40 billion after a funding round in October.