Key Moments:
- Congressman Abe Hamadeh formally questioned the CFTC about the partnership between Kalshi and CNN.
- Hamadeh raised concerns about potential conflicts of interest and risks to market integrity and national security.
- The CFTC has 30 days to respond and clarify its regulatory stance.
Legislative Scrutiny of Media and Prediction Markets
US Congressman Abe Hamadeh asked the Commodity Futures Trading Commission (CFTC) to explain how it is reviewing the new partnership between Kalshi and CNN. He cited concerns about regulatory compliance and broader risks.
On December 16, Hamadeh, a Republican from Arizona’s 8th district, confirmed he sent a letter to CFTC Acting Chairwoman Caroline Pham. He requested details about how the regulator will oversee this arrangement and ensure it follows existing legal requirements.
Potential Conflicts and Market Influence Highlighted
Hamadeh criticized the possibility that CNN could integrate Kalshi’s prediction markets into its news content on TV and digital platforms. Kalshi allows trades on political and geopolitical events, which Hamadeh warned could let reporting influence market outcomes.
He specifically noted risks when editorial coverage aligns with tradable events, such as elections, wars, policy crises, or domestic unrest. Hamadeh described this as a “built-in structural conflict of interest” that could affect markets for financial or competitive gain. He also pointed out that such a partnership is unprecedented among major media organizations.
Legal and Ethical Dimensions Under Review
Hamadeh cited the Commodity Exchange Act, which bans contracts related to war, gaming, or acts against public interest. He warned that some CNN–Kalshi event contracts might present ethical and legal issues. Markets that could be manipulated or affect real-world events raise particular concern.
Broader Risks: National Security and Foreign Interference
Hamadeh linked the partnership to national security risks. He argued that such a collaboration could allow foreign or adversarial actors to manipulate markets, sway narratives, or pressure institutions for profit. Ongoing concerns about media accuracy and impartiality also amplify the risk.
He urged the CFTC to evaluate potential vulnerabilities to influence over US politics and economics. Hamadeh called for a comprehensive review of how financial incentives could intertwine with media control.
Next Steps: Regulator Faces Deadline for Response
Hamadeh set a 30-day deadline for Acting Chairwoman Pham to explain how the CFTC is handling the issue. He specifically requested clarity on whether CNN’s editorial role, combined with Kalshi’s event contracts, could make the markets “contrary to the public interest.” He emphasized the CFTC’s duty to protect market integrity and warned that permitting the partnership in its current form poses unacceptable risks.
| Stakeholder | Concern | Action Requested | Response Deadline |
|---|---|---|---|
| US Congressman Abe Hamadeh | Risks to market integrity, democratic processes, and national security from the CNN–Kalshi deal | Detailed regulatory review and clarity from CFTC | 30 days |
- Author
Daniel Williams
