CFTC Investigates Kalshi Over Potential Self-Certification Procedural Errors
The Commodity Futures Trading Commission (CFTC) has launched an investigation into prediction market platform Kalshi to determine if the company failed to properly notify the agency regarding proposed event contracts. Kalshi characterized the matter as a minor procedural error involving weather-related contracts, many of which were never activated, and stated they are working with regulators to resolve the issue. The probe comes amid increasing regulatory scrutiny of the prediction market sector in Washington D.C. The CFTC has previously ordered Kalshi to remove certain sports-related markets and is also conducting a broad investigation into competitor Polymarket regarding potential violations of prior settlements. Increased legislative oversight is expected following the swearing-in of the new Congress in January.