Kalshi's CFTC Edge Fuels $5B Valuation Amid State Legal Challenges

Kalshi has secured $300 million in Series D funding at a $5 billion valuation, led by Sequoia Capital, Andreessen Horowitz (a16z), and returning investor Paradigm, with additional participation from CapitalG, Coinbase Ventures, and General Catalyst Kalshi raises $300 million in Series D funding at $5B valuation^[1]. The funding, finalized in August, follows the platform's expansion to over 140 countries, marking its first major international rollout and establishing it as the "world's only unified global prediction market" Kalshi raises $300 million in Series D funding at $5B valuation^[1]. The company reported a record $1 billion in trading volume for the week of the announcement, with annualized volume exceeding $50 billion-a 166-fold increase from $300 million in 2024 Kalshi, a Fast-Growing Prediction Market, Raises New Funds^[2].

Kalshi's dominance in the prediction market space has grown significantly, capturing over 60% global market share in September 2025, surpassing rival Polymarket, which held the lead earlier in the year Kalshi, a Fast-Growing Prediction Market, Raises New Funds^[2]. This shift reflects Kalshi's regulatory advantage as the first U.S. Commodity Futures Trading Commission (CFTC)-regulated prediction market, a distinction that has enabled its expansion into the U.S. market and attracted partnerships with platforms like Robinhood and Webull Kalshi raises $300 million in Series D funding at $5B valuation^[1]. By contrast, Polymarket, which recently secured a $2 billion investment from Intercontinental Exchange (ICE) at a $9 billion valuation, remains restricted in the U.S. and faces regulatory hurdles as it re-enters the market Prediction markets: Polymarket vs Kalshi rivalry^[4].

The firm's growth has been driven by sports betting and politically themed contracts, with complex parlays drawing significant user engagement Kalshi, a Fast-Growing Prediction Market, Raises New Funds^[2]. However, Kalshi now faces lawsuits from states including Arizona, Illinois, Montana, Ohio, Nevada, and Maryland, which argue its operations circumvent state gambling laws . Legal challenges in Nevada and Maryland have seen mixed rulings, with federal courts temporarily blocking Nevada's cease-and-desist order but allowing Maryland's regulators to enforce restrictions . These disputes highlight broader tensions between federal preemption under the Commodity Exchange Act and state-level oversight, with potential implications for the regulatory framework of event-based trading platforms .

Kalshi's CFTC-regulated status as a Designated Contract Market (DCM) underscores its commitment to transparency, integrity, and user protection, according to the firm's regulatory filings . The platform now serves millions of users globally, offering fiat-based trading and no wallet requirements, broadening its appeal beyond crypto-native audiences .