kalshi

Terry Duffy, the CEO of the Chicago Mercantile Exchange Group, expressed great concern about the recently approved perpetual contracts by U.S. regulators. Terry Duffy stated that perpetual contracts have almost no practical use for institutional investors, yet expose retail investors to excessive risk. He completely disagreed with the CFTC's decision to approve the first batch of crypto perpetual contracts after a rapid review and mentioned that he had called the CFTC chairman to express his concerns.Terry Duffy warned that perpetual contracts and prediction markets are triggering a speculative frenzy among retail investors, which could lead to an impending disaster. The first batch of perpetual contracts approved by the CFTC is listed by Kalshi, and several U.S. exchanges are also discussing launching their own perpetual contracts.

The prediction market platform Polymarket believes that its competitor Kalshi may be engaging in corporate espionage against its New York office and employees. Polymarket's marketing director confirmed that the company is conducting an internal investigation and stated that "there are too many coincidences," suspecting that Kalshi has malicious intentions.Reports indicate that Polymarket has compiled an internal dossier titled "Imitators," documenting about a dozen suspicious incidents. These include Polymarket's original plan to launch a free grocery flash event on February 12, while Kalshi launched a similar event about 9 days earlier; additionally, Polymarket was set to announce its perpetual contract product plan on April 21, but about 1 hour before the announcement, the tech media The Information reported that Kalshi was also preparing to launch a similar product.Polymarket employees are also concerned that the venture capital firm Paradigm, which supports Kalshi, has an office directly across from theirs, posing a risk of employees' computer screens being spied on. It is reported that Polymarket installed privacy film on some office windows this spring.In response, a Kalshi spokesperson denied all allegations, stating that Polymarket's suspicions are "sad and almost delusional."

The prediction market platform Kalshi announced on platform X that it has officially launched Bitcoin perpetual contracts.It is reported that this is the first Bitcoin perpetual contract product in the United States approved by regulators. This product is a perpetual contract referenced to the spot price of Bitcoin and is classified as a futures contract. The Commodity Futures Trading Commission of the United States previously stated that after review, it determined that the BTCPERP contract complies with the Commodity Exchange Act and relevant regulatory requirements, including the core principles applicable to designated contract markets (DCM).

According to The Block, Galaxy Digital has launched an over-the-counter prediction market trading desk aimed at hedge funds and family offices, with the first transaction being a $10 million Clarity Act-related contract reached with the crypto hedge fund Arca on Kalshi.As the primary market-making counterparty, Galaxy provides Arca with bilateral positioning and larger-scale liquidity. This service currently covers non-sports event contracts on Kalshi and Polymarket, encompassing markets such as economics, politics, and geopolitics, and plans to expand to more platforms. Galaxy can also hedge prediction market positions with stocks and commodity hedging portfolios, helping institutions manage multi-asset risk exposure around a single event in a unified manner.

According to Decrypt, after the CFTC in the United States approved Bitcoin perpetual contracts last Friday, the prediction market Kalshi quickly submitted self-certification applications for 12 mainstream altcoin perpetual contracts, including Ethereum, XRP, Solana, Dogecoin, Stellar, Chainlink, Bitcoin Cash, Litecoin, Sui, Shiba Inu, Polkadot, and Hedera.When approving the Bitcoin perpetual contracts, the CFTC stated that perpetual contracts for other assets would be reviewed on a case-by-case basis, so Kalshi's batch of applications has not yet been approved.

According to CoinDesk, the prediction market platform Kalshi has filed a federal lawsuit regarding a new law in Minnesota that will take effect on August 1, which classifies the operation, hosting, or promotion of prediction market platforms as a criminal offense. Kalshi argues that the law is unconstitutional, claiming it infringes upon the exclusive federal jurisdiction over derivatives markets granted to the CFTC by the Commodity Exchange Act, and violates the First Amendment on the grounds of restricting advertising.Previously, the CFTC had submitted a motion on May 19, also claiming that the state legislation is unconstitutional. U.S. President Trump has also publicly expressed support for the CFTC's exclusive regulatory authority over prediction markets. Kalshi has previously won a preliminary injunction in similar enforcement actions in New Jersey and Arizona.

According to CoinDesk, the prediction market platform Kalshi has filed a federal lawsuit regarding a new law in Minnesota that will take effect on August 1, which classifies the operation, hosting, or promotion of prediction market platforms as a criminal offense. Kalshi argues that the law is unconstitutional, claiming it infringes upon the exclusive federal jurisdiction over derivatives markets granted to the CFTC by the Commodity Exchange Act, and violates the First Amendment on the grounds of restricting advertising.Previously, the CFTC had filed a motion on May 19, also claiming that the state legislation is unconstitutional. U.S. President Trump has also publicly expressed support for the CFTC's singular regulatory authority over prediction markets. Kalshi has previously won a preliminary injunction in similar enforcement actions in New Jersey and Arizona.

The Spanish Directorate General for the Regulation of Gambling (DGOJ) has requested internet service providers to temporarily block the prediction market platforms Polymarket and Kalshi.The regulatory agency believes that both platforms are offering prediction trading products based on the outcomes of future events to local users without obtaining a gambling license in Spain, which may violate local gambling laws. The Spanish authorities stated that unlicensed platforms lack necessary consumer protection measures such as identity verification, protection for minors, and self-restriction mechanisms.Reports indicate that the relevant investigation is expected to last 3 to 4 months. During the investigation, Spanish users will receive risk warnings when accessing the relevant websites. The regulatory agency may subsequently impose fines, permanent restrictions, or require applications for local licenses.

According to BBX data, the pressure from market regulation suddenly intensified over the weekend, and institutional-level crypto derivatives product lines expanded simultaneously. The core dynamics are as follows:On May 22, James Comer (Republican, Kentucky), Chairman of the House Oversight and Government Reform Committee, officially issued investigation letters to Kalshi (privately held) and Polymarket (privately held), initiating a formal congressional investigation into insider trading on prediction market platforms. The investigation focuses on two suspicious bets: one betting on the early capture of Venezuelan President Maduro, and another betting on the direction of the Iranian conflict. Both transactions recorded unusually large amounts just hours before the related events were made public. According to media reports, the Wisconsin Attorney General has recently listed Robinhood Markets, Inc. (NASDAQ: $HOOD), along with Kalshi, Polymarket, and Crypto.com, as defendants, accusing them of providing unlicensed sports betting services in Wisconsin. This is the latest escalation of the prediction market facing legal challenges in 13 states to congressional scrutiny. Both Kalshi and Polymarket stated their willingness to cooperate with the committee's investigation, asserting that their platforms have robust anti-insider trading mechanisms.On May 23, the U.S. Securities and Exchange Commission (SEC) officially approved a proposal submitted by Nasdaq, Inc. (NASDAQ: $NDAQ) to launch cash-settled Bitcoin index options on its Philadelphia Stock Exchange, which does not involve physical delivery of Bitcoin. This product will allow institutional investors to hedge or invest in Bitcoin price fluctuations through standardized options contracts, filling a market gap for cash-settled Bitcoin index derivatives on regulated exchanges in the U.S. The timing of the approval coincided with significant fluctuations in Bitcoin over the week (with a low of $74,500 and a high rebound to $77,800), reflecting the accelerating release of genuine demand for volatility management tools in the market.

According to CoinDesk, the U.S. House Oversight Committee plans to investigate prediction market platforms due to concerns that U.S. government employees may exploit insider information to profit from policy and national security events. James Comer, the chairman of the House Oversight and Government Reform Committee and a Republican congressman from Kentucky, stated on CNBC's "Squawk Box" that he is seeking internal records from the CEOs of Polymarket and Kalshi to determine whether government employees are profiting from insider information related to policy, geopolitical, and military actions, and indicated that he may push for legislation to prohibit members of Congress, government officials, and other government employees from participating in prediction markets.This investigation comes at a time when prediction markets are rapidly developing, and there is increasing scrutiny from both parties in Congress. Legislators and experts warn that this burgeoning industry poses national security risks, potential insider trading, and gambling issues.

Despite ongoing disputes between the U.S. federal government and several state governments over the regulatory authority of prediction markets, platforms related to prediction markets such as Kalshi, Polymarket, Robinhood, and Coinbase continue to increase their business investments.Reports indicate that 17 states have challenged prediction market platforms, with some states arguing that sports event contracts essentially fall under gambling and should be regulated at the state level; meanwhile, the U.S. Commodity Futures Trading Commission (CFTC) asserts that event contracts fall under the category of derivatives and should be federally regulated.At the same time, the U.S. Congress has begun to intervene. James Comer, chairman of the House Oversight and Government Reform Committee, has requested that Kalshi and Polymarket submit documents related to insider trading prevention mechanisms.Despite the uncertainty in the regulatory environment, the valuations of related platforms continue to rise. Kalshi's latest financing has reached a valuation of $22 billion, doubling from $11 billion in December of last year; Polymarket's valuation is reportedly up to $15 billion.Executives from companies such as Flutter Entertainment, DraftKings, and Robinhood have stated that they will continue to invest in the prediction market business and believe that the related regulatory disputes will continue to evolve in the coming years.

According to Bloomberg, the U.S. Court of Appeals ruled that the enforcement lawsuits by Nevada and Washington against the prediction market platforms Kalshi and Polymarket can continue in state court, and rejected the companies' request to pause the related cases during the appeal.The court stated that Kalshi and Polymarket failed to demonstrate that the state court lawsuits would cause irreparable harm, nor did they prove that their claims regarding federal question jurisdiction had a high likelihood of success. This ruling involves the enforcement actions by Nevada against Kalshi and Polymarket, as well as the case against Kalshi by Washington.

According to CNBC, James Comer, the chairman of the House Oversight and Government Reform Committee, has launched an investigation into the prediction market platforms Kalshi and Polymarket, requesting both companies to explain their measures to prevent insider trading, including identity verification, geographic restriction enforcement, and abnormal trading monitoring mechanisms. Comer stated that internal records of the relevant platforms are key evidence for identifying improper traders and determining whether the platforms fulfill their legal obligations.Previously, Polymarket was reported to have suspicious trading related to U.S. events concerning Iran and Venezuela; Kalshi had also suspended the accounts of three congressional candidates who were betting on their own election results on the platform. Comer has requested both companies to submit relevant documents by June 5.

According to Bloomberg, informed sources revealed that the prediction market Kalshi has raised an additional $200 million from two new investors, Baillie Gifford and Layer Global, expanding the previous $1 billion financing led by Coatue Management, with the company's valuation remaining unchanged at $22 billion.Earlier, Kalshi announced at the beginning of this month the completion of a $1 billion Series F financing led by Coatue Management, with a valuation of $22 billion. Other participants included Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley, and ARK Invest. Kalshi's monthly trading volume in April exceeded $14 billion, with an annualized revenue of over $1.5 billion.

According to Bloomberg, Polymarket and Kalshi still allow Indian users to register and trade on their prediction markets even after warnings from the Indian government. The Indian side believes that these platforms operate illegally.Last month, the Indian Ministry of Electronics and Information Technology stated in a letter that despite the relevant bans implemented domestically, users are still accessing "illegal and blocked prediction markets and online entertainment platforms." This announcement was subsequently published on the ministry's official website and specifically named "Polymarket and other similar websites," stating that these platforms should have been blocked by Internet Service Providers (ISPs).

The prediction market platform Kalshi announced a partnership with Interactive Brokers.According to the cooperation details, Interactive Brokers has integrated the Kalshi prediction market into its existing trading platform, allowing users to manage prediction market positions and traditional portfolios on the same interface, and supporting real-time viewing of positions, liquidity, and price data.The initially launched prediction markets will mainly cover topics such as election results, climate events, and economic indicators.

According to Cointelegraph, the trading volume of the prediction market platform Polymarket saw a month-on-month decline in April, dropping about 8.9% compared to March, marking the first monthly decline since last August.According to Dune Analytics data, the total trading volume of Polymarket and its U.S. application in April exceeded $10.2 billion, down from $11.2 billion in March. In contrast, competitor Kalshi's trading volume increased significantly by 13% in April, reaching about $14.8 billion.Despite the decline in Polymarket's share, the total trading volume of the entire prediction market still grew from $26.5 billion in March to $29.8 billion in April, a month-on-month increase of 12.4%.

ARK Invest CEO Cathie Wood stated that ARK is pleased to participate in Kalshi's latest round of financing. It believes that prediction markets are becoming a powerful new type of financial infrastructure that enables real-time price discovery around events, probabilities, and changes in the state of the world.Cathie Wood mentioned that Kalshi is at the forefront of this innovation, and ARK is excited to support a team that continually pushes the boundaries of how markets aggregate and express information, congratulating them on achieving this important milestone.Previously reported, Kalshi announced the completion of a new round of $1 billion financing, led by Coatue Management, with participation from ARK Invest and others, resulting in a post-money valuation of $22 billion. This is the company's third round of financing in the past 7 months, with the valuation roughly doubling after each new funding round. Currently, Kalshi has approximately 2 million monthly active users, with an annual trading volume reaching $178 billion and annual revenue exceeding $1.5 billion.

According to Cointelegraph, the Commodity Futures Trading Commission (CFTC) submitted an amicus brief to the U.S. Court of Appeals for the Sixth Circuit in support of Kalshi's appeal in its lawsuit against Ohio, arguing that prediction markets should be under the jurisdiction of the CFTC.The CFTC pointed out that Ohio's previous request for Kalshi to cease offering sports event contracts constitutes "jurisdictional overreach." The CFTC stated that if state governments can restrict sports event contracts traded on designated contract markets (DCM), their long-term regulatory authority over event contracts, swaps, and binary options markets could be affected. The outcome of this case will also impact prediction market platforms such as Kalshi and Polymarket.