After Kalshi announced official partnerships with multiple major media outlets in December, a Congressman wants the Commodity Futures Trading Commission (CFTC) to answer his constituents’ “alarm bells” over the prediction market platform’s ties to CNN.
Arizona Republican Abe Hamadeh wrote to CFTC Acting Chair Caroline Pham on Dec. 15 to voice his concern that the collaboration with CNN “poses direct and foreseeable threats to market integrity, democratic stability, and American national security.”
He labeled the partnership “outright dangerous” and asked Pham to respond to his concerns within 30 days.
Partnership is entirely inappropriate, says politician
On Dec. 2, Kalshi announced it was CNN’s official prediction markets partner. As part of the deal, CNN planned on integrating its data across CNN programming, launching a Kalshi-powered real-time news ticker during segments featuring the company’s data and providing CNN’s newsroom, data and production teams with access to Kalshi’s market data for developing key storylines and visuals.
“My constituents 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,” wrote Hamadeh. “This partnership is not merely inappropriate; it is outright dangerous.”
The Congressman added that he believes CNN is uniquely positioned to alter and direct both public perceptions and news cycles related to events that Kalshi lists as tradable financial markets, including things such as elections and foreign policy.
“No other major media outlet has attempted such a partnership, and for good reason: It creates a built-in structural conflict of interest that allows an influential news organization or foreign adversaries to shape outcomes for financial or competitive advantage,” he opined. In point of fact, CNBC unveiled a relatively similar integration partnership with Kalshi two days after the CNN deal went public.
Answer me this
“The situation is chilling, and I have questions,” added Hamadeh.
In particular, Hamadeh wants to know how exactly the CFTC is reviewing the Kalshi–CNN partnership as it relates to Section 5c(c) of the Commodity Exchange Act, which addresses event contracts on aspects such as elections, war, gaming and matters deemed to be contrary to public interest.
“We need to know if the Commission is assessing this partnership to see if it is creating vulnerabilities for foreign or domestic actors to influence U.S politics, economics or national security outcomes for financial profit,” Hamadeh added. He also questioned whether the CFTC has evaluated whether the combination of CNN’s editorial influence over politically sensitive subject matter and Kalshi’s event contracts renders such markets contrary to the public interest, and asked how the commission will ensure Kalshi implements appropriate compliance controls.
“Allowing CNN, a network already viewed by many Americans as a propagandistic actor, to operate inside a live prediction market creates unacceptable national-security and governance vulnerabilities,” he concluded.
Kalshi responds on social media
The official Kalshi News account on X responded to the lawmaker by countering that he made erroneous accusations in the letter.
“With all due respect, you are accusing Kalshi of things we don’t do,” the account posted in a reply. “The markets you list (e.g. ‘Will Israel strike Gaza’) are on a competitor’s site, not Kalshi’s. And Kalshi rules prohibit CNN employees from trading on any contract where CNN would be a source of information.”
Kalshi echoed those comments in a comment provided to SBC Americas via email, also adding that as a CFTC-regulated financial exchange, Kalshi is not permitted to list contracts on war.
“As recent news partnerships have shown, Kalshi’s data is a powerful complement to reporting,” added the statement.
