Kalshi faces potential charges from the Commodity Futures Trading Commission after the regulator reportedly questioned on Tuesday whether the prediction-market platform notified it about dozens of new contracts.
Trouble for Kalshi?
The CFTC warned Kalshi that “charges could come soon,” Reuters reported, citing a person familiar with the matter.
The regulator didn’t immediately return Benzinga’s request for comment. A response from Kalshi is also awaited.
Regulators Turn Spotlight on $40 Billion Startup
The warning comes as Kalshi faces increasing regulatory attention while expanding its role in financial and event-based markets.
In September, a federal appeals court rejected Kalshi‘s argument that its sports contracts are swaps, a type of derivative that federal law places under the CFTC’s exclusive 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 also drawn investor attention after its valuation reached approximately $40 billion following a funding round in October.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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