Kalshi, which operates CFTC-regulated prediction markets, said the Commodity Futures Trading Commission has not contacted the company and that it does not believe any formal investigation has begun. The statement pushed back against reports questioning unusual trading patterns across the platform's Bitcoin and Ether perpetual markets.

Kalshi Disputes Reports of CFTC Review

Spokesperson Elisabeth Diana said Kalshi sends trading data to the CFTC every day. She added that a routine review would not be unusual, since the regulator already receives the platform's market information. The CFTC is the federal agency that oversees derivatives trading in the United States, which places Kalshi's regulated markets within its jurisdiction.

The reports focused on repeated trade sizes across the company's crypto contracts, which are perpetual futures — derivative contracts with no expiration date that are widely used in crypto trading to maintain ongoing exposure to an asset. CoinDesk found numerous Ether trades clustered near $5,500 and Bitcoin trades near $2,500 or $5,000. Recent wash trading concerns had already drawn attention to the platform's volume data.

Nearly Identical Trades Draw Attention

The Wall Street Journal reported that the CFTC was reviewing the activity before deciding whether to start an enforcement investigation. The report cited nearly one million Ether trades that appeared in similar amounts, and no decision on a formal enforcement investigation has been announced.

Independent researcher Beni also questioned the activity after comparing about $539 million in daily Ether perpetual volume with $3.1 million in open interest, using figures drawn from Kalshi's public API. Volume measures the value of contracts traded over a period, while open interest reflects the value of positions still open, which is why the gap between the two figures drew scrutiny. He found that $5,500 Ether trades made up a large share of notional volume on several September days.

Kalshi Points to Liquidity Incentives

Diana said Kalshi's liquidity incentive program can produce repeated trade sizes. Such programs reward participants who place orders and help other customers buy or sell contracts more easily. Broader interest in stock perpetual futures has also increased as exchanges seek regulatory approval for new products and compete for users and trading activity.

Kalshi added that it uses surveillance tools and a dedicated team to detect self-trading and wash trading. Wash trading creates the appearance of activity without changing a trader's real market exposure, and the company said its controls are designed to monitor that behavior.

Regulatory Attention Follows Rapid Growth

Prediction markets have expanded quickly, drawing greater attention to reported volume, market surveillance, and trading controls. The CFTC had not responded to a request for comment cited in Tuesday's report.

Other firms are also seeking approval for new derivatives, including Coinbase's U.S. perpetual futures filing, reflecting how regulated crypto-linked products continue to broaden across American trading platforms.

Diana also rejected social media claims about Kalshi and said competitors had fueled some of the rumors. The company maintains that the trading patterns reflect its incentive structure rather than improper activity, while market participants continue to debate the reported data across its markets. The unresolved question is whether the CFTC ultimately decides to open a formal enforcement investigation, something no report has confirmed to date.

Source: Is Kalshi Under CFTC Review? Company Responds via Blockonomi.