Prediction market platform Kalshi is in advanced discussions to raise approximately $1 billion in funding that would value the company at roughly $40 billion, nearly double its May 2026 valuation of $22 billion. Tiger Global and Dragoneer are reportedly in talks to lead the financing.
House Oversight Chairman James Comer has requested records from Hyperliquid Labs, Crypto.com and PredictIt regarding user verification and suspicious trading activity, expanding an investigation into potential insider trading on prediction markets. The probe cites reports of a Hyperliquid short placed before an October 2025 tariff announcement.
The 6th US Circuit Court of Appeals ruled on September 25 that states can apply local gambling laws to Kalshi's sports event contracts, rejecting the prediction market provider's argument that federal law preempts state regulation.
The CFTC issued a staff advisory stating that prediction market contracts settling on whether a named person says certain words should be presumed readily susceptible to manipulation, requiring exchanges to meet a higher regulatory bar.
Prediction market platform Polymarket is in talks to raise approximately $1 billion at a valuation exceeding $20 billion, more than double its $9 billion valuation from October 2025. The fundraising comes months after the company closed an earlier round with investment from hedge fund D.E. Shaw & Co.
New York Governor Kathy Hochul and Attorney General Letitia James filed a lawsuit against prediction market platform KalshiEX, LLC, alleging it operates an illegal, unlicensed gambling operation in the state. The lawsuit seeks to halt Kalshi's operations and demands the company forfeit approximately $36 billion.
Institutional digital asset trading platform Talos has integrated with prediction market operator Kalshi, enabling hedge funds and market makers to access event contracts and crypto perpetuals through their existing trading infrastructure without separate connections.
