Webull Teams Up with Kalshi to Bring Event Contracts to Traders
1min read Webull Brokerage, a leading online trading platform, has announced its collaboration with Kalshi, a prediction market, to introduce event contracts to its users. The integration of Kalshi's prediction contracts is set to occur over the next few weeks, with an initial limited product line that Webull plans to expand in the future.
Webull is the second brokerage company to list Kalshi's event contracts, following Robinhood's lead. The launch coincides with increased regulatory scrutiny from the Commodity Futures Trading Commission (CFTC), which has been examining sports-related event contracts. The CFTC has expressed concerns about whether these financial products comply with US derivatives regulations.
The CFTC's probe follows a series of events involving Crypto.com and Robinhood. In January, the agency reviewed Crypto.com's upcoming Super Bowl contracts. By February 4, the CFTC had officially opened an investigation into Crypto.com and Kalshi, prompting Robinhood to cancel its own Super Bowl contracts just a day after launching them.
Despite regulatory challenges, Kalshi continues to grow, forging alliances with large brokerages to bring prediction markets to retail traders. Event contracts differ from traditional sports betting in that they are based on the collective wisdom of the crowd, rather than a bookmaker determining odds. This decentralized, market-driven approach is at the heart of the current regulatory controversies, with authorities considering the legality and business model of event contracts.
As Webull prepares to roll out Kalshi's contracts, the industry eagerly awaits further regulatory clarity. The success of these offerings may hinge on how the CFTC chooses to classify and regulate them in the evolving landscape of prediction markets.
