CFTC warns Kalshi of imminent charges over contract notifications

CFTC warns Kalshi — The U.S. Commodity Futures Trading Commission has privately warned prediction markets operator Kalshi of imminent charges related to how the firm notified the regulator about new products, according to a Politico report.

The CFTC’s investigation, which has been underway for months, involves notifications for dozens of products, the report said. A private notification from the agency typically precedes formal charges. Kalshi spokesperson Elisabeth Diana described the issue as a procedural error affecting submissions for a handful of contracts, many of which never launched.

The potential enforcement action comes as the CFTC seeks to assert its exclusive authority over prediction markets, challenging state-level regulatory efforts. Kalshi is simultaneously backing the CFTC in a separate legal battle over its authority to regulate perpetual futures tied to individual U.S. stocks.

On Monday, Kalshi joined Coinbase and four other firms in seeking to file a legal brief supporting the CFTC’s position in that case. The company stated it is already addressing the notification issue raised by the regulator.