A US congressman has demanded answers from America’s derivatives regulator over Kalshi’s recently announced partnership with news broadcaster CNN.
Congressman Abe Hamadeh sent a letter to Caroline Pham, acting chair of the CFTC, warning that the arrangement “poses direct and foreseeable threats to market integrity, democratic stability, and American national security.”
The Arizona representative wrote on behalf of constituents who have “raised alarm bells about a media company with a long-documented record of partisan manipulation now positioning itself to influence and profit from geopolitical events in real time.”
He advised Pham that the partnership is “not merely inappropriate; it is outright dangerous.”
Hamadeh said: “CNN would be uniquely positioned to shape public perception and news cycles around the very events Kalshi lists as tradable markets.”
He noted these events could involve elections, war, foreign policy crises, and domestic instability.
Kalshi/CNN regulatory scrutiny
The congressman highlighted that no other major media outlet has attempted such a partnership, arguing it creates a built-in structural conflict of interest that allows an influential news organisation or foreign adversaries to shape outcomes for financial or competitive advantage.
Hamadeh referenced the Commodity Exchange Act, which he argued requires the commission to prohibit contracts involving war, gaming, or those “contrary to the public interest,” including markets vulnerable to manipulation or capable of influencing underlying events.
He pointed to media reports that “one recent Kalshi betting market allowed people to bet on whether Palestinians in Gaza would suffer mass starvation,” and when Israel will bomb Gaza, bomb the West Bank, or annex either.
Hamadeh added: “The situation is chilling, and I have questions.”
He asked what actions the CFTC is taking to review the partnership under the relevant section, particularly regarding risks of informational conflicts of interest and event manipulation.
The congressman has given Pham 30 days to detail the commission’s assessment and its intended actions regarding the Kalshi-CNN partnership.