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Kalshi adopts Nasdaq surveillance amid CFTC warnings and legal battles
The Commodity Futures Trading Commission (CFTC) has instructed regulated prediction market platforms to avoid using American-style gambling odds in their product displays. The guidance aims to prevent platforms from becoming indistinguishable from conventional sportsbooks, emphasizing that federal registration does not permit deceptive marketing or solicitation practices.
This regulatory move occurs amid a jurisdictional battle between the CFTC and state authorities. New York Attorney General Letitia James has sued Kalshi, seeking at least $36 billion in damages and penalties, alleging the platform operates an unlicensed gambling business. Kalshi maintains that its status as a CFTC-regulated exchange places it outside state gambling oversight.
In response to regulatory pressure and recent allegations of insider trading, Kalshi has entered a multi-year partnership with Nasdaq to adopt its market surveillance platform. The company is also implementing tools from providers like Solidus Labs and Comply to bolster its ability to detect market abuse, manipulation, and insider trading. These upgrades are intended to reassure institutional investors and align Kalshi’s oversight standards with traditional financial exchanges.
Entities
Commodity Futures Trading Commission · George Santos · Kalshi · Nasdaq · New York
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Kalshi is upgrading its trade surveillance infrastructure by modeling systems after Nasdaq and the NYSE.
- [○ 1 SOURCE] The CFTC fined former Representative George Santos $35,000 for alleged manipulative trading on Kalshi. wsau.com
- [○ 1 SOURCE] The CFTC instructed regulated prediction market platforms to avoid displaying American-style gambling odds in product displays. bitcoinethereumnews.com
- [○ 1 SOURCE] New York is seeking at least $36 billion in damages and penalties from Kalshi over alleged gambling violations. bitcoinethereumnews.com
- [○ 1 SOURCE] Kalshi has entered a multi-year partnership with Nasdaq to implement its market surveillance platform. wsau.com