Kalshi asks SEC to delay Cboe event contracts as prediction market rivalry grows

Kalshi has asked the Securities and Exchange Commission to delay approval of new Cboe binary options tied to corporate earnings metrics, escalating tensions between prediction markets and traditional exchanges.

Kalshi argued that the SEC should wait until regulators clarify how oversight of event contracts should be divided between the SEC and the Commodity Futures Trading Commission.

The proposed Cboe products would let traders bet on specific corporate performance metrics. They would compete with event contracts already offered by Kalshi, including markets tied to what Nvidia executives may discuss during earnings calls and the company’s headcount.

The dispute marks a reversal in the broader fight over prediction markets. Cboe and CME Group have previously criticized the CFTC for allowing new prediction market products to launch with what they view as limited regulatory scrutiny.

Cboe CEO Craig Donohue said last week that some prediction market products should be treated as securities under SEC oversight rather than derivatives regulated by the CFTC. He argued the current approach creates legal uncertainty and risks weakening investor protections.

Kalshi operates under CFTC oversight, while Cboe has sought SEC approval for its proposed corporate event contracts. Both agencies are currently seeking public input on how responsibilities between the two regulators should be defined.

Kalshi said approving Cboe’s proposal before that process is completed would effectively resolve unresolved regulatory questions before the public has had an opportunity to comment.

The competition is also moving beyond event contracts. Kalshi is separately seeking CFTC approval for perpetual equity futures that could compete with products tied to major equity indexes, including Cboe’s S&P 500 options business.