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Kalshi faces wash trading allegations and seeks margin trading approval
Prediction market platform Kalshi is facing scrutiny and pursuing regulatory expansion. A quantitative analyst named Beni has raised allegations of wash trading, citing a massive discrepancy between Kalshi’s 24-hour Ethereum perpetual volume (approximately $538.6 million) and its open interest ($3.1 million). Beni also noted that a single trade size of $5,500 accounted for a significant portion of the volume. Kalshi has denied these claims, stating that the patterns are a result of its market maker incentive structure and that its liquidity programs are designed to reward resting liquidity rather than artificial volume.
Simultaneously, Kalshi is seeking to expand its product offerings and attract institutional traders. The company’s clearinghouse, Kalshi Klear, has filed with the Commodity Futures Trading Commission (CFTC) to allow margin trading on certain event contracts related to economic, financial, and political events. This move aims to allow institutions to use leverage, though Kalshi noted that sports, culture, and 'mention' markets would be excluded from margin eligibility. Additionally, Kalshi has applied to list perpetual futures for major U.S. stocks, such as Apple, Nvidia, and Microsoft.
Legal challenges also persist, as the Ninth Circuit Court of Appeals recently ruled that Kalshi is illegally operating sports betting in California, despite the company's assertion that it is a regulated financial exchange.
Entities
Beni · Commodity Futures Trading Commission · IcoBeast · IcoBeast.eth · Jump Trading · Kalshi · Kalshi Klear · U.S. Securities and Exchange Commission
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 6 SOURCES] Kalshi Klear has filed with the CFTC to allow qualified institutional traders to use margin on certain event contracts. retailwit.com · dailycaller.com · www.tronweekly.com · coingape.com · www.cryptopolitan.com · +1 more
- [● 3 SOURCES] A single trade size of $5,500 accounted for 48% to 58% of ETH perpetual volume over four days. bitnewsbot.com · airdropalert.com · journalducoin.com
- [● 6 SOURCES] Margin trading would exclude sports, culture, and 'mention' markets. retailwit.com · dailycaller.com · www.tronweekly.com · coingape.com · www.cryptopolitan.com · +1 more
- [○ 1 SOURCE] Kalshi has applied to the CFTC and SEC to list perpetual futures for individual U.S. stocks including Apple, Nvidia, and Microsoft. www.nadanews.com
- [● 2 SOURCES] The repeated trade sizes resulted from market maker incentive structures rather than wash trading. bitnewsbot.com · cryptobriefing.com
- [○ 1 SOURCE] The Ninth Circuit Court of Appeals ruled that Kalshi is illegally operating sports betting in California. www.kpbs.org
- [● 5 SOURCES] Kalshi's ETH perpetual volume reached approximately $538.6 million in 24 hours against $3.1 million in open interest. zombit.info · bitnewsbot.com · airdropalert.com · crypto.news · journalducoin.com