Kalshi, the company that controls roughly 89-90% of the US prediction market, is doing what every dominant player eventually does when regulation comes knocking: it’s moving to Washington.

The CFTC-regulated platform opened a dedicated office in the capital back in January 2026 and has been steadily filling it with the kind of people who know how to work a Congressional hallway. The hiring spree spans policy, communications, and government relations.

The roster taking shape

John Bivona, a former advisor to the Biden administration, was brought on as head of government relations. In April 2026, Kalshi added Stephanie Cutter, a former Obama aide, as its policy advisor. The hires also include former regulators and Capitol Hill veterans. For a company that spent $615,000 on federal lobbying in 2025 alone, the office is less of a symbolic gesture and more of a permanent forward operating base.

To put that spending in perspective, Kalshi and Polymarket combined spent nearly $1 million on federal lobbying in 2025.

Why now, and why it matters

Prediction markets sit in an awkward regulatory gray zone. The CFTC has jurisdiction over event contracts, but debates continue about where federal oversight ends and state-level regulation begins. Add in growing concerns about potential insider trading on these platforms, and you’ve got the makings of a regulatory environment that could swing in any direction.

Kalshi isn’t the only one who sees the storm clouds gathering. The Coalition for Prediction Markets, a group that includes Crypto.com, Coinbase, Robinhood, and Underdog, hired Invariant, a Democratic lobbying firm, on April 1, 2026. Their specific mandate: lobby for event contracts regulation that works in the industry’s favor.

The bipartisan nature of the hires is worth noting. Bivona comes from the Biden orbit, Cutter from the Obama era.

What this means for the prediction market landscape

Kalshi’s dominance creates an interesting dynamic. With 89-90% market share in the US, whatever regulatory framework emerges will essentially be built around Kalshi’s business. The company knows this, and the D.C. office is its way of making sure it has a seat at the drafting table rather than being handed rules written without its input.

The fact that an entire coalition of major financial and crypto firms is simultaneously ramping up advocacy in D.C. reinforces that this isn’t one company being paranoid. It’s an industry preparing for a defining regulatory moment.

The question investors should be watching: does the prediction market industry get its own clear regulatory lane, or does it end up caught between gambling regulators, financial regulators, and state attorneys general all claiming jurisdiction? Kalshi is spending real money to make sure the answer is the former.