Kalshi Pulls Mention Markets as the CFTC Probes a Trump Teleprompter Trade

Kalshi has removed mention markets from its platform after the Commodity Futures Trading Commission opened an investigation into the category, which lets traders bet on words a public figure will say.

The trigger was a trade close to the president. Trump suspended teleprompter operator Gabriel Perez last month after Kalshi self-reported that Perez had made more than $100,000 on markets covering words Trump might use in his speeches. "He believes it's deeply unfortunate and, frankly, a disgrace," White House press secretary Karoline Leavitt told CNBC at the time. "The individual that was cited in that report is complying with the CFTC, but has been put on paid administrative leave." Kalshi did not comment on pulling the markets, leaving open whether they return.

The awkwardness is that the same regulator has been protecting the company. The CFTC, currently made up solely of Chairman Michael Selig, a Trump appointee, invoked rarely used emergency powers on Tuesday to order Kalshi to keep operating in New York in defiance of state orders.

City governments are now moving independently of their states. Baltimore Mayor Brandon Scott and the city council sued Kalshi and Polymarket for "operating illegal, unlicensed sports-betting platforms and misleading consumers about the legality and regulatory status of their products", making Baltimore the first major US city to act on its own. "These companies are running sportsbooks without licenses and betting that a new label will put them above the law," Scott said. "It won't." The suits seek to stop both firms operating in the city and ask for maximum fines, restitution to residents and disgorgement.

New York City Council Speaker Julie Menin has opened an investigation into Coinbase, Gemini, Kalshi and Polymarket over "potentially false, deceptive, or abusive marketing tactics, with particular concern for marketing directed towards young people". A Wall Street Journal report that Polymarket used influencers to promote fake trades will feed into it. "Prediction markets aggressively entice consumers to bet and wager on sports, politics, culture, weather, and pretty much anything," Menin said.

Mentions is one of seven categories a Washington judge barred Kalshi from listing this week. A draft in Mexico City would ban a similar set of contracts.