Kalshi Seeks CFTC Approval to Offer Margin Trading on Event Contracts

Boluwatife Adeyemi
Boluwatife Adeyemi

Boluwatife Adeyemi

Managing Editor (News)
Expertise : Crypto, Stocks, Tokenization, AI, Prediction Markets, Crypto Regulation
Boluwatife Adeyemi is a well-experienced crypto news writer and editor with a focus on macro topics, crypto policy and regulation and the intersection between DeFi and TradFi. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.
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CFTC Approves Kalshi US 500 Stock Index Perpetual Futures

Highlights

  • Kalshi has filed with the CFTC seeking approval to offer margin trading on its prediction markets.
  • The offering will reportedly not be available for its sports, culture, and mention markets.
  • This comes as the prediction market platform looks to attract more institutional liquidity.

Prediction market platform Kalshi has filed with the Commodity Futures Trading Commission (CFTC) to offer margin trading on event contracts. This comes as the platform looks to attract more institutional liquidity, even as it already offers leverage on its perpetual futures contracts.

Kalshi Files With CFTC To Offer Margin Trading

The filing with the CFTC shows that the prediction market platform is seeking to offer margin trading on eligible event contracts. The platform noted that this offering will apply to contracts that meet certain eligibility criteria including contracts related to “economic, financial, political, commercial, and other objectively verifiable events.”

However, Kalshi revealed that it won’t offer Margin trading on event contracts related to sporting events. The platform also confirmed to CNBC that the it will not offer margin trading on culture and mention markets.

This move comes as the prediction market platform looks to attract more institutional liquidity, with this offering set to be available only to traders who meet certain capital requirements. Margin trading will enable these investors to borrow capital to trade more shares of these event contracts than their initial deposit.

Kalshi already offers leverage for its perpetual futures contracts, which include crypto assets. The CFTC approved Kalshi earlier this year to offer the first fully regulated perpetual futures in the U.S. Earlier this month, Kalshi filed with the CFTC to offer gold and silver perpetuals.

This comes as prediction markets continue to gain prominence and mainstream adoption. As a result, the platform has seen its valuation double in months, with earlier reports that it was looking to raise fresh capital at a valuation of $40 billion, up from around $22 billion in May.

For more on prediction markets, check out Best Regulated Prediction Markets in the US

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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About Author
About Author
Boluwatife Adeyemi is a well-experienced crypto news writer and editor with a focus on macro topics, crypto policy and regulation and the intersection between DeFi and TradFi. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.