“US CFTC warns against prosecution of prediction market platform Calci”

Politico, a political media outlet, reported on the 11th (local time), citing sources, that the U.S. financial authorities are preparing to indict prediction market platform Kalci.

The U.S. Commodity Futures Trading Commission (CFTC) is investigating allegations that Kalci failed to properly notify authorities while launching dozens of new products, sources said.

The CFTC privately notified Kalsi of these charges, which Politico interpreted as an indication that an indictment or settlement was imminent.

“The CFTC’s warning concerns a procedural error in the submission of contracts for several products prior to any actual trading,” spokeswoman Elizabeth Diana Calci said in a statement.

He went on to say, “We are already in the process of solving that problem,” and emphasized that our product is not gambling, but a traditional, regulated derivative product.

Exchanges regulated by the CFTC can launch products without separate approval even the next day if they independently certify that a specific product meets certain requirements, such as no risk of market manipulation.

Kalci used this to produce prediction products such as sports game results and whether politicians would be impeached, and traditional financial exchanges strongly opposed it, saying, “The self-certification process increases the risk of market manipulation.”

In the two years since President Donald Trump was elected, the prediction market has grown explosively, with the corporate values ​​of the leaders, Calci and PolyMarket, reaching $40 billion (56 trillion won) and $21 billion (29 trillion won), respectively.

In a friendly environment, products have been expanded to areas such as American politics and sports.

However, Politico interpreted the financial authorities' investigation into Calci as a foreshadowing of high-intensity hearings and introduction of regulations on the prediction market industry in the next Congress after the midterm elections.

The CFTC is also conducting a large-scale investigation into Polymarket on charges of violating the 2022 agreement with the authorities and illegally allowing U.S. users to access and trade on the platform.

President Trump's eldest son, Donald Trump Jr., is an advisor to Polymarket, and 1789 Capital, where he is a partner, invested hundreds of millions of dollars in Polymarket and led the attraction of $1 billion worth of investment.