Prediction markets operator Kalshi has been warned by the United States Commodity Futures Trading Commission (CFTC) that charges could be imminent over whether the firm properly notified the agency about new products, Politico reported on Tuesday.

The regulator is investigating notifications involving dozens of products, according to the report, which cites a person with direct knowledge of the probe. The agency's private notification to Kalshi suggests that charges could follow, and the investigation has been underway for months, the person said. Under the CFTC's product listing framework, regulated exchanges notify the agency of planned contract offerings before listing them for trading — the process at the center of the current probe.

Responding to Politico, Kalshi spokesperson Elisabeth Diana described the matter as a procedural error involving submissions for a handful of contracts, many of which never went live for trading on the platform. "We are already addressing the issue," she added.

The potential enforcement action comes as the CFTC fights to establish its exclusive authority over prediction markets in the United States, including through challenges to state efforts to regulate Kalshi. How that dispute is resolved could determine whether oversight of event contracts rests with federal regulators or with individual states.

Separately, Kalshi is backing the regulator in a distinct legal battle over its authority. On Monday, the company joined Coinbase and four other firms in seeking permission to file a brief supporting the CFTC's treatment of perpetual futures tied to individual US stocks. The support highlights the unusual dynamic of a company facing potential charges from the same regulator it is defending in court.

Kalshi operates a CFTC-regulated exchange for event contracts, which allow users to trade on the outcomes of real-world events such as elections and economic data releases. The company is one of the most prominent operators in the US prediction markets sector. Whether the CFTC proceeds with formal charges, and how the notification dispute is resolved, remain open questions to watch.