CFTC warns Kalshi of possible enforcement charges

The US Commodity Futures Trading Commission (CFTC) has warned prediction market operator Kalshi that charges could follow an investigation, according to an exclusive report by Politico.

The probe examines whether Kalshi properly notified the regulator about dozens of new products submitted for review.

“We are already addressing the issue,” Kalshi spokesperson Elisabeth Diana said in a statement.

Diana said the warning concerned a procedural error involving submissions for a handful of contracts, many of which were never launched.

The investigation centres on the CFTC’s self-certification process, which allows regulated exchanges to introduce products without prior agency approval.

Under this system, exchanges certify that contracts meet regulatory requirements, including safeguards against market manipulation.

The CFTC has faced scrutiny over how prediction markets operate as Kalshi expands beyond event contracts into other financial products.

The investigation puts Kalshi’s product approval procedures under greater regulatory scrutiny as federal oversight of prediction markets develops.