Kalshi

Utah’s attorney general has sued Kalshi, the prediction-market platform, arguing it operates an illegal gambling operation and describing the firm as the manager of a back-alley gambling den. Utah also declared the activity a public nuisance. The case adds another state-level challenge to event contracts, building on pressure event-contract platforms already face from regulators over whether such products count as gambling or regulated derivatives.

The Block reported on Friday that a federal appeals court ruled Kalshi has not adequately demonstrated that its sports event contracts qualify as swaps under the Commodity Exchange Act, leaving the prediction market platform on the losing side of litigation against Ohio and Tennessee sports betting regulators and widening the split among US federal circuits.

ESMA has formally questioned the EU operating status of prediction market platforms Polymarket and Kalshi, warning of potential authorization gaps under MiFID II and MiCA frameworks. The move signals stricter regulatory scrutiny ahead for the prediction market sector in the European Union.

The US Commodity Futures Trading Commission (CFTC) has approved the first cryptocurrency perpetual futures contracts, with Kalshi and Coinbase receiving authorization to list them. This marks a significant milestone for US crypto derivatives markets, providing institutional investors with additional hedging tools.

CFTC Opens Crypto Perpetual Futures Trading in U.S. Milestone The U.S. Commodity Futures Trading Commission (CFTC) has officially approved Kalshi exchange to list crypto asset perpetual futures contracts, marking the first time U.S. regulators have provided a pathway for regulated firms to participate in the crypto perpetual derivatives market. What Are Perpetual Futures Perpetual futures are futures contracts without an expiration date, allowing traders to hold positions indefinitely through a funding rate mechanism. This market has long been one of the largest segments of global crypto trading, but primarily operated on offshore exchanges outside U.S. regulatory oversight. ...

House Oversight Chairman Comer has launched an investigation into insider trading on prediction market platforms Kalshi and Polymarket, sending letters to both CEOs with a deadline to respond by June. The move follows India’s recent crackdown on Polymarket. Prediction markets, as an emerging financial instrument, operate in a regulatory gray area. The probe will examine whether trades exploiting non-public information have occurred, whether platforms have adequate monitoring mechanisms to detect and prevent insider trading, and whether prediction markets should fall under CFTC oversight. ...