Regulations

Story: Kalshi Slaps Fines on Congressional Candidates Who Bet on Their Own Races as Blumenthal…

By Evie Vavasseur

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Blumenthal Questions CFTC Oversight. Senator Richard Blumenthal sent a letter to the CFTC on April 21, one day before Kalshi's…

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Perpetual Futures Enter the Game. Kalshi's moving into cryptocurrency perpetual futures.

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Kalshi kicked three congressional candidates off its platform on April 22. The reason? They bet on their own races.

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The prediction market suspended them for five years and hit them with fines between $539.85 and $6,229.30. Kalshi called it political insider trading, plain and simple.

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His main gripe? How does the CFTC actually resolve disputed bets on prediction markets? Blumenthal zeroed in on military action contracts, the kind Kalshi and Polymarket both run.

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Kalshi's moving into cryptocurrency perpetual futures. Launch date looks like April 27, based on a teaser video the company put out. Details are scarce, but the shift is big.

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New York Attorney General Letitia James filed a lawsuit against Coinbase and Gemini. Her office says their prediction market offerings are illegal gambling under state law.

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More context: Kalshi and Polymarket Jump Into Perpetual Futures to Take On Offshore Crypto Giants

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Kalshi's enforcement actions show the platform can regulate itself to some degree. The company identified the candidates, fined them, and banned them—all without CFTC intervention.

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The April 30 deadline matters. The CFTC has to respond to public comments about prediction market oversight. Whatever they say could shape the industry for years.

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Kalshi and Polymarket's pivot to perpetuals is partly about diversification. Event contracts are seasonal. Elections happen every few years.

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The legal challenges won't disappear. New York's lawsuit against Coinbase and Gemini argues that prediction markets on U.S.

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Blumenthal's proposed legislation could clarify some of this. The Prediction Market Security & Integrity Act would establish federal standards for platform operations,…

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More context: Sam Bankman-Fried Drops New Trial Bid, Puts All Chips on Appeal

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The soldier's case is going to trial. Prosecutors say he earned over $400,000 betting on events he knew would happen because of his military access.

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