Kalshi Asks CFTC to Allow Margin Trading, but Not on Sports

Kalshi's clearing house asked the Commodity Futures Trading Commission (CFTC) on Sept. 22 to let approved traders buy event contracts with borrowed money.

The request would end the rule that event contracts on regulated U.S. exchanges are paid for in full. Kalshi told CNBC leverage would make longer-dated contracts more attractive to institutions, the customers behind an 800% jump in its institutional volume in the six months to May.

Sports Contracts Stay Cash-Only

The filing comes from Kalshi Klear, the exchange's in-house clearing house. Its proposed Event Contract Margin Framework) covers economic, financial, political, commercial "and other objectively verifiable events."

The CFTC has to approve it before anything changes.

Contracts on a sporting contest would not qualify. A Kalshi spokesperson told CNBC the company would also leave out its culture and "mention" markets.

Only registered futures brokers and large institutions that Kalshi Klear approves as self-clearing members could use margin. Required collateral would climb back toward the full amount as a contract nears settlement. That is when its price is most likely to jump.

Senators Want the CFTC to Ban Margin Outright

Two senators got there first. John Hickenlooper of Colorado and Jack Reed of Rhode Island wrote to CFTC Chairman Michael Selig on May 21, asking him to bar prediction markets from lending to their users at all.

Margin trading allows trading without full collateral. In other words, it allows a bettor or investor to essentially borrow from the house and lose or gain more money than they bet or invest.

The senators counted 35 states that limit the credit a gambling venue may extend to customers. Colorado and Tennessee ban it for sports betting entirely, they wrote.

They also said 90% of the contracts Kalshi lists are sports. That is the business state regulators are already trying to shut down, and the one this filing leaves out.

Rival Polymarket applied in July to register its own futures brokerage, Bloomberg reported.

Kalshi Klear asked the CFTC to keep its margin math confidential. The filing sets Nov. 9, 2026 as the earliest date the framework could start.

Treat gambling as entertainment you pay for. 18+, and if it stops feeling like entertainment, help exists at BeGambleAware and GamCare.