The US Commodity Futures Trading Commission (CFTC) has alerted prediction markets operator Kalshi of potential charges related to the notification of new products. According to a report by Politico, the issue centers on whether Kalshi properly informed the agency about dozens of contracts. A person familiar with the investigation described the CFTC’s private notification to Kalshi as a precursor to possible enforcement action.
Kalshi spokesperson Elisabeth Diana downplayed the matter, calling it a procedural error involving a small number of contracts. She noted that many of these contracts never went live and that the company is already addressing the issue. The investigation has been ongoing for several months, according to the source.
The potential charges come as the CFTC seeks to assert its authority over prediction markets, including challenging state regulatory efforts targeting Kalshi. In a separate legal battle, Kalshi has sided with the CFTC, joining Coinbase and other firms in supporting the regulator’s stance on perpetual futures tied to individual US stocks.