Kalshi, a federally regulated prediction market platform, is raising over $100 million in a funding round, highlighting the increasing interest in legal prediction markets in the U.S.
Kalshi's New Funding and Valuation
According to Bloomberg reports, Kalshi is raising over $100 million in a funding round led by investment firm Paradigm. This funding will push its valuation above $1 billion, placing the company alongside its unregulated competitor Polymarket, which is also rumored to be pursuing a similar valuation.
A Turning Point in Regulation
The recent decision by the Commodity Futures Trading Commission (CFTC) to cease legal action against Kalshi marks a pivotal moment. Judge Jia Cobb highlighted that the CFTC had overstepped its authority by claiming that political betting threatened market integrity. This shift creates conditions for Kalshi's successful operations within U.S. law.
Comparison with Polymarket
Polymarket, Kalshi's nearest competitor, is also raising $200 million but operates in a more ambiguous environment. Despite restrictions for U.S. users, the platform processes significant betting volumes. The CFTC has repeatedly pointed to the risks of this approach, casting doubt on further regulatory developments in this market segment.
Kalshi's funding within legal boundaries opens new prospects for prediction markets in the U.S., establishing precedents for future regulation and development in this sector.
