Kalshi is a federally regulated prediction market exchange based in New York. It became the first US prediction market to receive approval from the CFTC (Commodity Futures Trading Commission) as a Designated Contract Market (DCM) in 2020, allowing US residents to legally trade event contracts on economic, political, weather, and sports outcomes.

Is Kalshi legal in the US?

Yes. Kalshi is fully legal for US residents. It holds a CFTC Designated Contract Market (DCM) license — the same type of federal approval held by established exchanges like the CME Group. Customer funds are segregated and protected, and the platform operates under the same regulatory framework as traditional US derivatives exchanges.

How does Kalshi make money?

Kalshi charges a transaction fee on trades, typically around 7¢ per contract side (0.07 USDC per contract), though fees vary by market. The exchange does not take any position in its own markets and profits solely from transaction volume. There are no fees on deposits or withdrawals.

What markets can I trade on Kalshi?

Kalshi offers a wide range of event contracts including: Federal Reserve rate decisions, US economic data releases (CPI, jobs report, GDP), election outcomes, weather events (hurricane landfalls, temperature records), box office results, sports championships, and more. After winning a landmark court case against the CFTC in 2024, Kalshi expanded its election market offerings significantly.

How does Kalshi compare to Polymarket?

The key difference is regulatory status: Kalshi is fully CFTC-regulated and open to US residents, while Polymarket operates outside the US regulatory framework and restricts American users. Polymarket typically has more liquidity on individual markets and wider global access, while Kalshi offers stronger legal protections, USD settlement via bank transfer, and a growing catalog of US-focused economic and political markets.

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Kalshi News

Kalshi is the first federally regulated prediction market exchange in the United States, holding a CFTC Designated Contract Market (DCM) license since 2020. Founded by former Goldman Sachs and MIT researchers, Kalshi enables US residents to legally trade event contracts on economic data, political outcomes, sports, and weather events with full regulatory protections and USD settlement.

The company’s regulatory journey was groundbreaking — it took over two years of CFTC review before Kalshi received approval to operate. The platform won a landmark 2024 court decision allowing it to offer election contracts after the CFTC attempted to block them, establishing important precedents for the future of US prediction markets. Kalshi has secured significant venture funding from investors including Sequoia Capital.

Latest Kalshi Articles

Decrypt·Crypto·8h ago

MrBeast Video Editor Suspended From Beast Industries Following Kalshi Insider Trading Probe

MrBeast video editor suspended following Kalshi insider trading investigation, raising questions about access to non-public information and market integrity on prediction platforms.