CFTC
CFTC oversight is what makes Kalshi legal for US retail users.
Prediction Markets 101 editorial team Updated April 16, 2026 1 min read
Definition
The Commodity Futures Trading Commission is the US federal agency that regulates derivatives markets. Kalshi is a CFTC-designated contract market. Polymarket settled with the CFTC in 2022.
Plain-English explanation
The CFTC's Commodity Exchange Act authority includes event contracts. Kalshi, as a CFTC DCM, operates legally in all 50 US states. Polymarket's 2022 settlement (Order 22-09) was for operating without CFTC registration.