Prediction Markets Under Fire: Washington, Crypto.com, and Kalshi in Regulatory Crosshairs

Washington and Crypto.com have put their litigation on hold pending a ruling from the Ninth Circuit court. This decision comes as Congress looks to ban prediction markets tied to wildfires with a new House bill.

Kalshi, a prediction market operator, is facing scrutiny over its recent partnership with Catalist Sports after related pages disappeared. The company has filed with the CFTC to list equity index perpetual futures and copper, but not single-stock perpetuals at this time.

Prediction market executives were initially invited to a White House meeting with tech leaders but will no longer be participating. Kalshi's Robert J. Denault argues that prediction markets are inconsistent with federal commodities law and create 'bad incentives' when it comes to wildfire wagering.