727 FinancePANews reported on September 24 that according to Coindesk, Kalshi said that the U.S. Commodity Futures Trading Commission (CFTC) has not contacted it, and the company does not believe that it is under formal investigation, and refuted reports that its prediction market trading activities are subject to regulatory scrutiny.
The majority of trading volume in Kalshi’s Bitcoin and Ethereum perpetual contracts markets consists of trades of the same size, with many Ethereum perpetual contract trades clustered around $5,500 and Bitcoin perpetual contract trades centered around $2,500 or $5,000. The Wall Street Journal reported similar data late Tuesday, adding that the U.S. CFTC was investigating Kalshi’s trading activity after nearly a million transactions of similar amounts emerged on the ethereum market. Regulators are reviewing the data to decide whether to launch a law enforcement investigation, the report said. In this regard, Kalshi said that these data patterns are typical of liquidity incentive programs and are common in financial markets.