Kalshi Backs Washington Lobby Group to Press for Federal Rules on Prediction Markets

Overview

• Americans for Fair Markets (AFM) launched Monday with financial backing from Kalshi and named Taylor Budowich as a strategic advisor to lead its Washington outreach.
• AFM’s public platform calls for federal Commodity Futures Trading Commission rules, mandatory know‑your‑customer checks, explicit bans on insider trading, and limits on contracts tied to violence.
• The rollout coincided with a House Oversight inquiry into suspicious trades on Kalshi and Polymarket, which probes whether users profited from nonpublic government information.
• State regulators and gambling trade groups have sued or moved to block some markets, and recent court rulings have limited federal preemption, leaving jurisdiction between states and the CFTC unresolved.
• If Congress or the CFTC adopts AFM’s agenda, platforms would need identity checks and stronger surveillance, which supporters say would curb abuse while critics warn restrictive rules could push activity offshore or into unregulated crypto venues.