CFTC Warns Kalshi It Could Face Charges Over Contract Filings

The Commodity Futures Trading Commission (CFTC) has warned Kalshi that it could soon face charges over how it notified the agency about new contracts, Politico reported on Nov. 10, citing a person with direct knowledge of the probe.

The investigation has run for months and covers notifications for dozens of contracts, according to multiple reports. No charges have been filed, and the matter could still end in a settlement.

The case turns Kalshi's main ally into a possible accuser. Kalshi argues its sports and event contracts are federal products that only the CFTC can police, and the agency has backed it in court against states such as Utah. The company raised $1 billion at a $40 billion valuation in October.

Kalshi Calls It a Procedural Error

Kalshi acknowledged the warning but disputed its scale. Spokesperson Elisabeth Diana said the matter "is about a procedural error involving the submission of a handful of contracts, many of which weren't live."

"We are already addressing the issue," she added. The CFTC has not identified the contracts or a proposed penalty.

The probe centers on self-certification, which lets a regulated exchange list a new contract without advance CFTC approval. The exchange must certify that the contract meets federal rules, including how it settles and why it resists manipulation. Those are the rules a trader depends on when a market pays out.

On July 24, CFTC staff told exchanges that "broad, template-style certifications should not be submitted." That advisory did not name Kalshi.

Kalshi Backs the Agency Elsewhere

Kalshi still sides with the regulator in another fight. On Nov. 9, it joined Coinbase and four other firms seeking to file a brief that supports the CFTC's treatment of perpetual futures tied to U.S. stocks.

Kalshi also faces criminal charges in Utah, and Democrats plan tougher congressional oversight of prediction markets when the next Congress convenes, Politico reported. The next step to watch is whether the CFTC files charges or announces a settlement, and how many contracts it says were affected.

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