Kalshi confirmed to CNBC that the Commodity Futures Trading Commission (CFTC) of the United States is investigating whether this market forecasting platform failed to provide appropriate notification to the commission regarding the proposed event contracts.

According to Kalshi, this is a minor issue regarding the contract declaration method, and they mentioned that they are working with CFTC to resolve it. Kalshi stated that CFTC proposed contracts related to weather. As a leading predictive market platform, Kalshi did not specify when they began investigating this matter. CFTC did not immediately respond to requests for comments.

Polit Token Distribution reported on this investigation first on Tuesday, stating that according to a non-public notice sent by CFTC to Kalshi, related accusations could emerge soon. Kalshi has refused to comment on any possible accusations.

Predictive market platforms can certify event contracts on their own without the prior approval of federal agencies, provided that they comply with the Commodity Exchange Act. This self-regulatory mechanism allows new contracts to be launched more quickly.

"Procedural error"

Kalshi Communication Supervisor Elisabeth Diana stated: "This notification relates to procedural errors that occurred during the submission of a few contracts, many of which were not yet live at that time. We are already working on resolving this issue."

This is the latest measure taken by CFTC to tighten regulation of the forecasting market. As Washington's regulatory agencies and members of Congress continue to intensify their scrutiny of the industry, the forecasting market is facing increasing oversight.

In August this year, CFTC ordered Kalshi to take down sports-related “mention markets” ( mention markets ) – in these markets, speculators can trade on what a certain person might say during broadcasts or speeches – and at the same time launched an investigation into this type of event contract.

The agency is also conducting a more extensive investigation into its competitor Polymarket, which includes reviewing whether the company has violated the settlement agreement reached with CFTC in 2022. According to this agreement, American traders are not allowed to access its international trading platform. Polymarket's domestic exchange in the United States operates separately from its global platform.

The predictive market is expected to face even stricter scrutiny after the new Congress controlled by Democrats takes office next January. California Democratic Representative Ro Khanna posted on the social media platform X on Tuesday, calling for a ban on sports predictive markets – which account for the vast majority of trading volume on major platforms.

Revelation: CNBC has a business relationship with Kalshi, which includes client acquisition for cooperation as well as a small amount of equity investment.