Kalshi told CNBC the Commodity Futures Trading Commission (CFTC) is examining whether the prediction-market operator properly notified the agency before self-certifying proposed event contracts, a process that can let compliant products reach markets without prior approval.
Self-certification allows an exchange to submit a contract without waiting for the CFTC’s advance approval, provided it meets the Commodity Exchange Act’s requirements. CNBC said the process can speed up the introduction of new contracts. The inquiry centers on whether Kalshi followed the notice process for its proposed products.
Kalshi said weather-related contracts were among those flagged by the regulator. Elisabeth Diana, Kalshi’s head of communications, described the matter as a “procedural error” involving a handful of submissions. She said many of the contracts were not live and that Kalshi was addressing the issue with the CFTC.
Kalshi did not provide a start date for the review. CNBC reported that the CFTC had not replied to its request for comment by publication. CNBC also disclosed a commercial relationship with Kalshi that includes customer acquisition and a minority investment.
Politico reported Tuesday that the CFTC had privately notified Kalshi and that charges could come soon. Kalshi declined to comment on possible charges.
In August, the CFTC ordered Kalshi to remove sports-related “mention markets” while it examined that type of contract, CNBC reported. Traders in these markets could wager on whether someone would say particular words or phrases in a speech or broadcast.
The inquiry is separate from a CFTC rulemaking on event contracts that began in March after the agency withdrew a 2024 proposal amid state regulatory actions and litigation. CNBC also reported a separate CFTC investigation into rival Polymarket, including whether it violated a 2022 settlement restricting U.S. traders’ access to its international platform. Polymarket’s U.S. exchange operates separately from its global platform, CNBC said.
