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The U.S. Commodity Futures Trading Commission has warned Kalshi that it may bring enforcement charges against the prediction market platform over alleged compliance failures, according to POLITICO. The warning comes as Democrats prepare to intensify congressional oversight of prediction markets, adding regulatory pressure on a sector that has expanded rapidly alongside crypto-adjacent trading venues. Kalshi, which operates as a CFTC-regulated designated contract market, has positioned itself as the compliant alternative to offshore competitors such as Polymarket. The potential action matters because it tests whether the CFTC's existing framework can accommodate event contracts at scale, and whether Kalshi's regulated status shields it from the scrutiny facing rivals. Traders should watch for formal charges, the scope of alleged failures, and whether Democratic lawmakers advance legislation or hearings that could reshape rules for the entire prediction market industry.

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CFTC, Kalshi, Democrats, POLITICO