According to POLITICO, the U.S. Commodity Futures Trading Commission (CFTC) is investigating whether prediction market platform Kalshi failed to comply with regulations regarding the notification of dozens of proposed new contracts to regulators and has warned Kalshi of potential enforcement action. Kalshi responded that the issues involve procedural errors in the submission process of a few contracts, many of which have not yet been launched, and that the company is working to resolve them. The investigation, which has been ongoing for several months, focuses on the self-certification mechanism for new prediction market contracts. Under current regulations, exchanges only need to declare to the CFTC that a new product meets relevant regulatory requirements to launch it for trading as early as the following day, without requiring explicit approval. In July of this year, the CFTC warned prediction market operators against using overly broad language in their new product certifications. Simultaneously, the CFTC is also investigating whether Polymarket violated the 2022 settlement agreement's requirement to restrict U.S. users' access to its platform. With Democrats preparing to strengthen industry oversight after the midterm elections, the U.S. prediction market is facing stricter regulatory scrutiny. https://(wublock123.com)/news/politico-cftc-charges-kalshi-registration-issues-prediction-markets-71708