
The American regulator examines the compliance of notifications of new contracts from the predictive markets platform.
AI-generated summary
The CFTC is currently defending its exclusive jurisdiction over predictive markets against several American states. Kalshi is a platform specializing in event-based contracts.
The Commodity Futures Trading Commission (CFTC), the US regulator of derivatives markets, privately warned Kalshi that its investigation could lead to prosecution, Politico reported on November 10. The file concerns the notifications that the predictive markets platform sends to the regulator when it wishes to propose new contracts. Kalshi recognizes a procedural error and says he has started to correct it.
The key points of this article
The CFTC has been reviewing Kalshi's new product notifications for several months, according to Politico.
A person familiar with the investigation speaks of dozens of products examined.
Kalshi describes a procedural error affecting a handful of contracts, many of which were never offered to the public.
The warning comes as the CFTC defends its jurisdiction over predictive markets against several US states.
CFTC Reviews Kalshi New Contract Filings
When a platform like Kalshi wants to add a contract to its catalog, it must follow a filing procedure with the CFTC. The regulator here examines how Kalshi informed it of the arrival of new products. According to the person cited by Politico, the investigation has been going on for several months and the checks concern dozens of products. The report does not specify which contracts are targeted.
Elisabeth Diana, a spokesperson for Kalshi, describes a procedural error in the files submitted for a handful of contracts, many of which were never posted online. At this stage, the media reports a private warning and possible prosecution.
The CFTC also defends its authority against American states
This filing comes as the CFTC challenges the moves of several states seeking to apply their own rules to Kalshi. The agency defends its exclusive competence in predictive markets. The investigation into notifications focuses on how the platform complies with federal obligations linked to its new contracts.
Kalshi is also supporting the regulator in a separate procedure. On Monday, the company joined Coinbase and four other companies in requesting permission to file a memorandum in support of the CFTC's position on perpetual futures contracts tied to individual U.S. stocks.

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