Kalshi CEO: Prediction Markets Face US Exodus Without Federal Regulation @mansourtarek_, co-founder and CEO of @Kalshi, has issued a stark warning at DC Fintech Week: prediction markets could be forced to leave the United States entirely due to fragmented state-level regulatory disputes. He called for unified federal oversight under the CFTC rather than patchwork state restrictions. Mansour rejected the argument that prediction markets constitute gambling. The fundamental difference, he argues, lies in the business model. Exchanges set prices through open market competition, while bookmakers and casinos control pricing in their favor. This distinction demands derivatives regulation, not gambling restrictions. Kalshi faces ongoing litigation from multiple state attorneys general. Washington filed suit in March 2026, Wisconsin followed in April, and New York’s prosecutor demanded a complete shutdown with over $36 billion in penalties. The CFTC intervened to defend the federal oversight framework. The platform’s composition has transformed significantly. Sports contracts — which represented 96% of trading volume nine months ago — now account for just 65-70%. The fastest-growing segments are politics, cryptocurrencies, and commodities. Notably, 75% of daily active users visit for information rather than trading. Mansour acknowledged that the proliferation of events creates additional insider trading risks, but emphasized that transaction transparency facilitates violation detection. Kalshi employs KYC verification, suspicious activity monitoring, and Nasdaq solutions for market surveillance. #Kalshi #PredictionMarkets #Regulation #CFTC #Fintech #Crypto #Derivatives #Compliance #FinancialMarkets #Web3