The regulator stayed a Kalshi rule change and invoked emergency authority, calling the first state attempt to void executed derivatives trades unprecedented.

Prediction-market operator Kalshi is in talks to raise fresh capital at a roughly $40 billion valuation, the Financial Times reported, nearly double the price tag from a $1 billion round that closed seven weeks ago at $22 billion.

After generating $5.5 billion in trading volume in two weeks, Kalshi is pushing to extend its CFTC-regulated perpetual futures beyond crypto into a wider range of asset classes.

Kalshi flagged the trades, froze the account, and referred the case to federal authorities — the first known criminal-and-civil enforcement track against a named individual on a CFTC-regulated US prediction market.

Kalshi's co-founder said the new capital will be used to accelerate that institutional adoption.

Polymarket announced early access for perpetual futures trading, while The Information reported that Kalshi is planning a similar product launch.

The DOJ and CFTC filed to enjoin Arizona's criminal and civil enforcement against prediction market platform Kalshi, arguing federally regulated event contracts fall under CFTC jurisdiction.

Former Kalshi employees are raising capital for 5c(c) Capital, a venture firm focused on prediction market infrastructure.

The deal doubles the valuation from Kalshi's previous round in November.

Kalshi's resolution of prediction markets tied to the death of Iran's Supreme Leader Ali Khamenei has sparked controversy.