Kalshi files with CFTC to offer margin trading on prediction markets
Kalshi, the dominant U.S. prediction market platform, filed on September 22, 2026, with the Commodity Futures Trading Commission (CFTC) to offer margin trading on event contracts. The proposal, submitted through its clearinghouse Kalshi Klear, would allow institutional traders to borrow funds for leveraged positions, with collateral requirements increasing as contracts near settlement. Margin would not apply to sports, culture, or "mention" markets. Critics warn it could worsen gambling addiction. Kalshi accounts for over 90% of U.S. prediction market activity.
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Kalshi Asks Trump Administration to Approve Margin Trading on Prediction Markets
Kalshi, a major U.S. prediction market, has filed with the Commodity Futures Trading Commission (CFTC) through its clearing house Kalshi Klear to offer margin trading on event contracts, as reported by CNBC. If approved, traders could borrow funds from the company to amplify gains or losses, potentially exposing investors to significant financial risk. The move is seen as crucial for attracting larger institutional bettors who already use margin trading on traditional stocks and futures. Kalshi generates revenue from transaction fees, so bigger bets mean more profit. State gaming commissions have historically limited credit for sports betting, but prediction market firms argue their products are derivatives under CFTC jurisdiction. CFTC Commissioner Michael Selig has defended prediction markets. A Kalshi spokesperson stated margin trading would not apply to sports, culture, or 'mention' markets, but only to contracts with far-future expiration dates, with increasing leverage costs as expiry nears, and only for Kalshi Klear users.
Read sourceKalshi Seeks CFTC Approval to Offer Margin Trading on Its Prediction Market
Prediction market platform Kalshi is seeking regulatory approval from the Commodity Futures Trading Commission (CFTC) to offer margin trading, allowing users to borrow money from the platform to place bets on real-world events. Margin trading, also known as leverage, is common in stock and bond markets but not widely available on prediction markets. Critics, including some analysts and politicians, warn that allowing leverage on prediction markets could worsen gambling addiction, as users could borrow money at high interest rates to place bets. Kalshi argues the move is a natural evolution to attract more institutional investors. The company already offers limited leverage on its perpetual futures contracts but not on its main prediction market used by individuals. Trading volumes on prediction markets like Kalshi and Polymarket have surged this year, driven by events such as the World Cup. Kalshi plans to increase capital requirements for leverage as event contracts near expiry.
Read sourceKalshi asks CFTC to allow margin trading on prediction markets to attract institutions
Kalshi, the dominant US prediction market platform, filed on Tuesday with the Commodity Futures Trading Commission (CFTC) seeking approval to offer margin trading on its event contracts. The filing, made through its internal clearinghouse Kalshi Klear, aims to attract institutional traders by allowing them to use borrowed funds to gain greater exposure. Kalshi proposed a tiered structure where collateral requirements increase as contracts near settlement. Access to leverage would be limited to self-clearing members meeting specific capital thresholds, and would not apply to sports, culture, or 'mention' markets. The company already offers leverage on perpetual futures but not on prediction markets. Rival Polymarket also moved in July to obtain regulatory licenses for margin trading in the US. Kalshi's push comes amid rapid growth, with annualized trading volume rising from $52 billion to $178 billion over six months, and accounts for over 90% of US prediction market activity. The company has also expanded internationally through partnerships with Alpaca and Wealthsimple. CNBC, which reported on the filing, holds a minority stake in Kalshi.
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Kalshi asks CFTC to allow margin trading on prediction markets to attract institutions
Kalshi, the dominant U.S. prediction market platform, filed on September 22, 2026, with the Commodity Futures Trading Commission (CFTC) seeking approval to offer margin trading on its event contracts. The filing, made through its internal clearinghouse Kalshi Klear, aims to attract institutional traders by making longer-dated prediction markets more attractive. Under the proposed tiered structure, collateral requirements would increase as contracts approach settlement. Leverage would be restricted to self-clearing members meeting specific capital thresholds, and would not apply to sports, culture, or 'mention' markets. Kalshi already offers leverage on perpetual futures but not on prediction markets. The move follows broader industry efforts, including rival Polymarket's July moves to obtain regulatory licenses for margin trading. Kalshi accounts for over 90% of U.S. prediction market activity, with annualized trading volume rising from $52 billion to $178 billion over six months. The company has also expanded internationally through partnerships with Alpaca and Wealthsimple. CNBC, which reported on the filing, holds a minority stake in Kalshi.
Prediction Platform Kalshi Asks US CFTC to Allow Margin Trading on Its Platform
On September 22, event prediction platform Kalshi formally requested that the U.S. Commodity Futures Trading Commission (CFTC) permit it to offer margin trading on its platform. The request, reported by Chinese financial media outlet Cailianshe, indicates Kalshi's ambition to expand its product offerings beyond cash-settled prediction contracts. Margin trading would allow users to borrow funds to increase their trading positions, potentially amplifying both gains and losses. The CFTC's decision on this request could set a precedent for how prediction markets are regulated in the United States, particularly regarding leverage and risk management. Kalshi, which operates as a regulated exchange under CFTC oversight, has previously offered contracts on events ranging from economic data releases to political outcomes. The outcome of this request remains uncertain, as the CFTC has not yet issued a public response.