CFTC Enforcement Division Issues Prediction Markets Advisory

The CFTC Division of Enforcement issued an advisory after KalshiEX, a Designated Contract Market, internally handled two enforcement matters involving improper trading in prediction markets: a May 2025 case where a political candidate traded on his own contract resulting in a $2,246.36 penalty and 5-year suspension, and an August–September 2025 case where a YouTube channel editor traded on material non-public information resulting in a $20,397.58 penalty and 2-year suspension. The advisory reiterates the Commission's authority to pursue violations on DCMs including misappropriation of confidential information, pre-arranged trading, disruptive trading, and fraud.