Predictive Markets: CFTC Threatens Kalshi With Imminent Lawsuit

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When a platform like Kalshi wants to add a contract to its catalog, it must follow a filing procedure with the CFTC. The regulator here examines how Kalshi informed it of the arrival of new products. According to the person cited by Politico, the investigation has been going on for several months and the checks concern dozens of products. The report does not specify which contracts are targeted.

Elisabeth Diana, spokesperson for Kalshi, describes a procedural error in the files transmitted for a handful of contracts, many of which were never posted online. At this stage, the media reports a private warning and possible prosecution.

This filing comes as the CFTC challenges the steps of several states seeking to apply their own rules to Kalsh i. The agency defends its exclusive competence in predictive markets. The investigation into notifications focuses on how the platform complies with federal obligations linked to its new contracts.

Kalshi is also supporting the regulator in a separate procedure. On Monday, the company joined Coinbase and four other companies in requesting permission to file a memorandum in support of the CFTC's position on perpetual futures contracts tied to individual U.S. stocks.

If the CFTC initiates proceedings, the publication of its grievances will make it possible to know which filings it considers irregular and to measure the gap with the procedural error recognized by Kalshi. Case to follow on the Washington side.

An editorial article. Le Journal du Coin, the first French-speaking news media on cryptocurrency, Bitcoin, and blockchain protocols.

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Machine-translated from French