--- title: "CFTC Warns Kalshi It May Soon Face Charges Over New Contract Filings" description: "Kalshi says the problem is a procedural error involving a handful of contracts, many of which never went live." author: "rews desk" published: 2026-11-10T23:40:12Z modified: 2026-11-11T07:14:45Z url: https://rews.cc/a/cftc-warns-kalshi-it-may-soon-face-charges-over-new-contract-97cca4 language: en tags: ["regulation", "prediction-markets", "cftc", "trump", "politics", "business"] publisher: "Rews (https://rews.cc)" --- # CFTC Warns Kalshi It May Soon Face Charges Over New Contract Filings *Kalshi says the problem is a procedural error involving a handful of contracts, many of which never went live.* By rews desk · November 10, 2026 · https://rews.cc/a/cftc-warns-kalshi-it-may-soon-face-charges-over-new-contract-97cca4 ## In brief - The CFTC has privately warned Kalshi that it could soon face charges, POLITICO reported on Tuesday - The agency is looking at whether Kalshi failed to properly notify it about dozens of new products - Kalshi said the issue was a procedural error over a handful of contracts, many of which weren’t live - In July, CFTC staff warned exchanges against broad template self-certifications of event contracts - Polymarket, valued at $21 billion, is also under CFTC investigation over a 2022 settlement The Commodity Futures Trading Commission has privately warned Kalshi, the prediction market valued at $40 billion, that it could soon face charges over how it told the agency about new contracts, POLITICO reported on Tuesday. The agency is investigating whether Kalshi failed to properly notify it about dozens of products that were in the works, according to a person with direct knowledge of the inquiry, who was granted anonymity to discuss enforcement activity that hasn’t been announced. The investigation has been underway for months, the person told Declan Harty of POLITICO, whose story was [republished by Business Insider](https://www.businessinsider.com/wall-street-regulator-poised-to-bring-charges-against-kalshi-2026-11). A private warning of that kind suggests charges could come soon. It was not clear when they might be filed. Kalshi describes the problem as much smaller. Elisabeth Diana, a spokeswoman for the company, said in a statement that the warning “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,” Ms. Diana said. A CFTC spokesperson did not immediately respond to POLITICO’s request for comment. ![A stylized navy figure with a cream circular head and orange neck detail rides a cream paper airplane against a teal background.](https://rews.cc/img/56bc9bea29fa4f9546ade3d0c54686d30682e087.webp) The inquiry centers on self-certification, the process that exchanges regulated by the CFTC use to put new products on the market quickly. An exchange attests that a contract meets federal requirements, including that it can’t be easily manipulated, and can start trading it as soon as the next day. The commission doesn’t have to approve anything. The same route covers oil derivatives and a Kalshi market on whether Defense Secretary Pete Hegseth will be impeached. Regulators had already raised concerns about how the process was being used. On July 24, the agency’s Division of Market Oversight issued an [advisory](https://www.cftc.gov/csl/26-22/download) telling exchanges to stop filing what it called “broad template certifications,” single filings that bundle many versions of a contract with different settlement sources or methods. The staff said such filings made it harder to tell whether an exchange had supplied all the information and analysis the rules require, and said many exchanges had kept filing that way after a similar warning in March. [Bloomberg reported](https://www.bloomberg.com/news/articles/2026-07-24/cftc-warns-prediction-markets-over-blanket-self-certifications) at the time that the advisory was aimed at prediction markets. It was guidance, and it didn’t take the self-certification option away, [iGaming Business reported](https://igamingbusiness.com/prediction-markets/cftc-self-certification-contracts/). ![Cream sheets fan upward through a yellow band from a dark blue rectangular base against a bright blue background.](https://rews.cc/img/6adc8b4c7a98a64786494e13cc3e9525eaa5cbd7.webp) Wall Street has complained, too. Terry Duffy, the chief executive of CME Group, said earlier this year that a growing number of prediction market contracts were at risk of manipulation and shouldn’t have been allowed to go live. The warning comes from an agency that has mostly been on Kalshi’s side. Under its chairman, Michael Selig, the CFTC has backed prediction markets in their fight with state officials who say the companies are breaking gambling laws. That fight hasn’t gone well for the companies lately. A Sixth Circuit panel ruled in September that [states may regulate the markets as gambling](https://rews.cc/a/the-states-may-regulate-prediction-markets-as-gambling-a-six-69f6d9), and last week Kalshi and Coinbase [lost a bid to stop New York and Connecticut](https://rews.cc/a/kalshi-and-coinbase-lose-bid-to-stop-new-york-and-connecticu-6afd73) from enforcing their gambling laws. Prediction markets have grown fast since President Trump won the election two years ago, much of it in political and sports contracts the CFTC’s lighter approach allowed. Kalshi is valued at $40 billion and its main rival, Polymarket, at $21 billion. Polymarket is also under a broad CFTC investigation, POLITICO and other outlets have reported. Among other things, the agency is examining whether the company violated a 2022 settlement that required it to keep U.S. users off its platform. Pressure is also building in Congress. Democrats, who swept the midterm elections last week, are preparing to scrutinize the industry closely when the next Congress begins in January.