CFTC Warns Kalshi, Polymarket and Prediction Markets Over Manipulation Risks

The CFTC warned that prediction markets based on what a person says or does face a heightened manipulation risk. These 'mention markets' can include bets on whether someone uses certain words, attends an event, or interacts with another person. The regulator said such contracts may only be suitable in limited circumstances, signaling stricter oversight for Kalshi and Polymarket.