Kalshi Says CFTC Hasn’t Contacted It Over $5B Ether Trades

Kalshi, a prediction markets operator that launched Ether perpetual futures in May, says it has not been contacted by the U.S. Commodity Futures Trading Commission (CFTC) and does not believe the regulator is formally examining its market activity. The statement follows a Wall Street Journal report claiming the CFTC is reviewing a pattern of rapid, highly clustered trades in Kalshi’s Ether perpetual futures. According to the Journal, the trades appeared in repeated blocks clustered around roughly $5,500 and have led to allegations of wash trading. Kalshi disputes that framing, arguing the pattern is consistent with liquidity incentives and market-making behavior common across financial markets. Key takeaways Kalshi says the CFTC has not contacted it and that it does not think there is a formal examination of its Ether perpetual futures activity. The Wall Street Journal reported regulator interest tied to rapid trade clusters around approximately $5,500 and alleged wash trading. Kalshi points to liquidity incentive programs paying market makers for maintaining quoted orders, not for the volume of trades filled. Kalshi’s response argues repeated fixed-size trades can occur when resting orders meet demand from many takers. The company recently reported rapid growth, with perpetual futures volume surpassing $1 billion about a week after the May launch. CFTC review claims come amid Kalshi growth The controversy centers on Kalshi’s Ether perpetual futures markets—trading venues where participants speculate on Ether’s price without necessarily taking spot ownership. The Wall Street Journal reported that the CFTC is examining a sequence of fast trades clustered around $5,500, citing a person familiar with the matter. The Journal’s reporting also noted the trade clustering raised wash-trading concerns—an accusation generally tied to the idea that trading volume inflates without genuine economic risk-taking by either side. Kalshi’s push into perpetual futures has been rapid. About a week after launching its perpetual futures markets in May, the company told CNBC that trading volume had surpassed $1 billion. That growth backdrop is part of why the Journal’s regulator story has drawn attention to how Kalshi’s markets are being supported by liquidity providers. Kalshi denies wash trading and says it wasn’t contacted Elisabeth Diana, head of communications at Kalshi, told Cointelegraph that the company has not been contacted by the CFTC and does not believe there is any formal examination. “We have not been contacted by the CFTC and don’t believe there is any formal examination,” Diana said. She described the discussion as “rumors seeded by competitors,” adding that liquidity incentives can produce data patterns that are common in traditional financial markets. Diana also urged readers not to rely on social media chatter.