Case 2:26-cv-00151 Document 1 Filed 02/23/26 PageID.15 Page 15 of 27
43. Event contracts are also a valuable means of communicating information to the
public because contract prices reflect prevailing market opinions and conditions. Prediction markets thus serve as sensitive information-gathering tools that can provide insights for stakeholders—including businesses, individuals, governments, and educational institutions. This is not theoretical. Kalshi has recently announced partnerships with CNN and CNBC, which make use of its market data in their reporting. 16 44. Kalshi has recently launched a platform, Kalshi Research, to share market data with academics and promote research derived from the same. 17 Data generated through prediction markets can also help to set rates and prices for assets whose value depends on the occurrence or non-occurrence of the underlying event. See 7 U.S.C. § 5(a) (derivatives contracts, including event contracts, “are affected with a national public interest by providing” both a means for hedging risk and “disseminating pricing information through trading in liquid, fair and financially secure trading facilities”). B. Congress Delegated the Power to Regulate Event Contracts That Are Offered by a Regulated Exchange to the CFTC. 45. Futures contracts have long been regulated by the federal government. In 1936, Congress passed the CEA, which provides for federal regulation of all commodities and futures
16 See James Faris, Prediction giant Kalshi strikes a new media partnership with CNBC, days after its CNN deal , Business Insider, (Dec. 4, 2025) https://www.businessinsider.com/kalshi-cnbc-deal-cnn-data- integration-partnership-2025-12; R.T. Watson, Kalshi inks exclusive CNBC deal as prediction markets surge into mainstream media , The Block, (Dec. 4, 2025) https://www.theblock.co/post/381415/kalshi- exclusive-cnbc-deal-prediction-markets-surge-mainstream-media. 17 See Kalshi launches new research arm , Kalshi News, (Dec. 22, 2025) https://news.kalshi.com/p/kalshi- launches-research-arm-prediction-markets.
15
Made with FlippingBook - Online catalogs