Kalshi

Kalshi is a CFTC-regulated designated contract market (DCM) where investors trade event contracts—yes/no derivatives that settle to $1 based on real-world outcomes. Founded in 2018 by Tarek Mansour and Luana Lopes Lara, Kalshi launched to the public in 2021 after receiving federal approval in late 2020, positioning itself as the first fully regulated U.S. venue for this product class.

Key Facts

• Founded: 2018 (public launch 2021).
• Regulatory status: CFTC-regulated Designated Contract Market (DCM).
• Headquarters: New York City, U.S.
• Products: Yes/no event contracts across macro data, policy, culture and (subject to ongoing rules) elections.
• Fees: Transaction fees per the posted fee schedule; ACH withdrawals typically carry a $2 fee.
• Recent funding: $185M round in June 2025 at a $2B valuation; a further $300M raise at a reported $5B valuation (Oct. 10, 2025). How Kalshi Works

Kalshi lists standardized yes/no markets that settle to $1 if the event occurs and $0 if it does not. Contract prices reflect probabilities (e.g., $0.63 ≈ 63%). The exchange operates an order book under CFTC oversight, with fee mechanics and schedules published for transparency, including specifics on when taker/maker charges apply and standard ACH withdrawal fees.

Legal Landscape: Elections & State Challenges

After the CFTC initially blocked Kalshi’s Congressional control markets in 2023–2024, the D.C. Circuit in October 2024 allowed the exchange to proceed pending further review, a pivotal moment for regulated political event contracts. In May 2025, the CFTC moved to drop its appeal, reducing immediate federal-level uncertainty around Kalshi’s ability to list election-related contracts.

Separately, several U.S. states have scrutinized prediction markets; in October 2025 Kalshi filed suit against Ohio’s regulator after a cease-and-desist order, underscoring ongoing jurisdictional debates between federal derivatives law and state gambling regimes.

Why It Matters

Event contracts give institutions and retail users a regulated way to hedge or express views on data releases, policy decisions, weather risks, and more. With CFTC market-structure rules and audited fee disclosures, Kalshi aims to bring price discovery and risk transfer to domains that traditional futures and options often don’t reach. Recent funding and court milestones suggest growing mainstream interest—even as policy guardrails continue to evolve.

Considerations for Users

• Regulatory scope: Federal DCM oversight does not preempt all state actions; check your state’s guidance.
• Costs & limits: Review the live fee schedule and any product-specific caps before trading.
• Market risk: Prices move with new information; contracts can expire worthless. Use size and risk controls appropriate to binary payouts.

Outlook

With fresh capital, a growing catalog, and clearer (though still evolving) legal footing, Kalshi is positioned to expand distribution and market depth in the U.S. event-contracts niche. Watch for new listings tied to macro releases, policy decisions, and—subject to rules—elections, as well as potential broker integrations that could bring event trading to a broader investing audience.