CFTC reportedly warns Kalshi of potential charges over contract filings
The investigation includes weather-related contracts. Kalshi says it involves a handful of submissions, many for contracts that were not live.
Key points
- The CFTC is investigating Kalshi's notification of proposed event contracts.
- The investigation includes weather-related contracts, Focus Gaming News reported.
- Kalshi described the notice as concerning a procedural error and said it is addressing the issue.
- Politico reported that charges could come soon, though the investigation could also end in a settlement.
The Commodity Futures Trading Commission is investigating whether US prediction market operator Kalshi properly notified the regulator about proposed event contracts, including weather-related products, Focus Gaming News reported on 2026-11-12.
Kalshi has reportedly been warned that it could face charges over its use of the CFTC's self-certification process. InGame cited Politico as reporting that the investigation had been underway for months and could result in charges or a settlement.
Politico, citing a person with direct knowledge of the probe, reported that Kalshi had failed to properly notify the agency about dozens of products in development. Kalshi confirmed the probe to CNBC, according to Focus Gaming News, and characterized it as involving a limited number of submissions.
The notice is about a procedural error involving the submission of a handful of contracts, many of which weren’t live. We are already addressing the issue.
CFTC chairman Michael Selig declined to comment, citing the agency's policy on ongoing investigations, Focus Gaming News reported. Kalshi has not said when the agency began its review.
Self-certification allows an exchange to notify the CFTC of a proposed contract and provide details such as its rules. If the agency does not object before the specified listing date, the exchange may list it, though that does not constitute formal approval.
Most CFTC-regulated contracts use self-certification, according to InGame. Exchanges must affirm that such contracts meet the agency's core principles, and the products must comply with the Commodity Exchange Act.
The CFTC warned exchanges in July against overly broad self-certifications. The investigation also comes amid separate state scrutiny: in October, the New York State Gaming Commission asked a Manhattan court to order Kalshi to comply with subpoenas issued in July concerning its operations in the state.
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