Kalshi disputes CFTC review of contract filings

The review focuses on self-certification, which lets federally regulated exchanges list certain derivatives without seeking explicit approval for each product. Exchanges must notify the CFTC and certify that contracts meet applicable requirements, including providing details on settlement and assessing the risk of market manipulation.

Kalshi spokesperson Elisabeth Diana called the matter “a procedural error involving the submission of a handful of contracts, many of which weren’t live.” She said the company was already addressing it. The account differs from that of a person familiar with the probe, who said regulators were reviewing notifications for dozens of proposed products. The discrepancy has not been publicly resolved. The CFTC has not announced charges, named the contracts under review or disclosed a possible penalty.

The reported warning follows a July 24 CFTC advisory urging exchanges to follow proper procedures for event-contract filings. The agency cautioned against broad, template-style certifications that bundle numerous possible contracts, saying they may not provide enough information about settlement, market data and compliance. The advisory applied generally to designated contract markets and did not identify Kalshi as having broken the rules. It allows closely related contracts to be certified together under certain conditions.

The investigation comes as Democrats prepare to increase congressional scrutiny of prediction markets following their November 2026 midterm election victories, POLITICO reported. Kalshi says its products are federally regulated derivatives; some state authorities have challenged its ability to offer certain contracts without complying with local gambling restrictions. The company won a legal dispute with the CFTC in 2024 over political event contracts, after which its markets expanded. In October, Kalshi completed a $1 billion funding round at a $40 billion valuation, co-led by Wellington Management and Sequoia Capital.

The CFTC is also investigating Polymarket’s compliance with restrictions from a 2022 settlement, including measures to block unauthorized access by US users. The regulator ordered the company in January 2022 to pay a $1.4 million civil penalty for operating an unregistered facility offering event-based binary options. Neither investigation has produced a final enforcement decision.