Kalshi Warned of Possible CFTC Charges Over Contract Filings

Politico first reported the warning on November 10, citing a person with direct knowledge of the investigation. Reuters later confirmed the account through its own source. The CFTC did not respond to Reuters’ request for comment.

Kalshi Says Many Contracts Were Not Live

Kalshi spokesperson Elisabeth Diana described the warning as concerning "a procedural error involving the submission of a handful of contracts, many of which weren’t live."

"We are already addressing the issue," Diana added.

Reuters describes an investigation involving dozens of products. Kalshi, meanwhile, acknowledges filing errors affecting only a handful of contracts.

Neither account identifies the contracts in question. It is also unclear how many reached trading, whether any remain available or which rules the CFTC believes may have been breached.

CFTC Had Warned Exchanges About Broad Filings in July

The dispute concerns self-certification, the process exchanges use to list contracts without obtaining advance CFTC approval.

Under Regulation 40.2 filing procedures, exchanges must notify the regulator before listing a product and certify that it complies with federal requirements. Submissions must include contract terms and supporting compliance information.

On July 24, the CFTC issued an advisory warning exchanges against broad, template-style certifications covering numerous event-contract variations. The regulator said such filings make it difficult to assess settlement methods, data sources and compliance.

Federal Inquiry Is Separate From State Cases

Kalshi is already fighting state gambling regulators over the legal status of prediction markets. In Utah, for example, the dispute has reached the criminal courts, as 15M previously reported.

The CFTC has not publicly announced charges in the filing matter. Any formal complaint would identify the contracts under scrutiny and specify the alleged violations.