Kalshi has backed a new advocacy group, Americans for Fair Markets, as the prediction market industry faces rising pressure from casinos, sportsbooks, state regulators, and Congress.
Summary
- Kalshi-backed Americans for Fair Markets will lobby for federal prediction market rules and consumer protections.
- The launch comes as Congress now probes Kalshi and Polymarket over insider trading control systems.
- State gambling cases keep pressure on platforms seeking CFTC-led oversight of event contracts nationwide.
The group launched with Taylor Budowich, a former deputy White House chief of staff, as strategic advisor.
Americans for Fair Markets plans to shape federal policy for prediction markets and federally regulated exchanges. Kalshi said the group will support paid and earned campaigns against what it called “false narratives about prediction markets” from sportsbook and casino interests.
The group also said it will support consumer rules for regulated platforms. Its stated priorities include know-your-customer checks, bans on insider trading, full CFTC funding, and limits on contracts tied to war, death, terrorism, and assassination.
Former Trump aide joins the policy push
Taylor Budowich’s role gives the group a direct link to Republican political circles. Budowich most recently served as deputy White House chief of staff under Susie Wiles, according to Kalshi’s announcement.
John Bivona, Kalshi’s head of government relations and an AFM board member, framed the launch as a response to powerful gaming interests.
“We’re not going to be outspent or out-organized by entrenched interests protecting their monopolies,” he said.
Additionally, the launch came as the U.S. House Committee on Oversight and Government Reform opened an investigation into Kalshi and Polymarket. The committee asked both firms for records on user checks, geographic limits, and suspicious trading controls.
The probe follows concerns that users with non-public government information could profit from event contracts. Related reports also cited suspicious trades tied to geopolitical events and a case involving a U.S. Army master sergeant accused of using classified information to earn more than $409,000.
CFTC and states remain divided
Kalshi wants federally regulated prediction markets to remain under the Commodity Futures Trading Commission. State regulators argue that some event contracts, especially sports-linked markets, fall under local gambling laws.
As reported by crypto.news, that conflict widened after Kalshi and Polymarket lost emergency bids in Nevada and Washington. A Ninth Circuit panel ruled that a federal derivatives defense does not automatically move state gambling cases into federal court.
Prediction markets expand beyond retail trading
Related reports show Kalshi has also been moving toward larger financial use cases. Bernstein pointed to Kalshi’s first bespoke block trade as a step toward institutional event-risk trading, while Clear Street added a regulated access route for larger clients.
Kalshi has also appeared in reports about crypto perpetual futures and media data deals. Earlier coverage noted that Fox would stream Kalshi’s real-time probabilities across Fox News, Fox Business, Fox Weather, and Fox One after similar integrations with CNN and CNBC.
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