Regulators Reportedly Poised to Charge Prediction-Market Giant Kalshi

The crackdown on prediction markets may be about to land on its biggest name.

A Wall Street regulator is poised to bring charges against Kalshi, Politico reported ^[1]. The New York Post, citing that report, said Kalshi could face federal charges over how it handled regulatory notifications for new betting contracts ^[2].

Kalshi lets users trade on the outcome of real-world events, from elections to economic data. The industry exploded in popularity this year, and regulators have been turning up the heat ^[2].

No charges had been filed as of Tuesday evening.

Code & Coin's take: prediction markets sit in a gray zone between investing and gambling. If regulators move against the market leader, every platform in the space will feel it, and so will the users who have money parked there.