Prediction market platform Kalshi filed documents with the U.S. Commodity Futures Trading Commission to terminate its Volume Incentive Program, effective no earlier than October 13, 2026. The filing was submitted as a self-certification under Section 5c(c) of the Commodity Exchange Act and CFTC Rule 40.6(a).
The program previously distributed rebates to traders based on their trading volume, designed to enhance order book liquidity and pricing efficiency across all markets on the platform.
The termination follows regulatory scrutiny over wash trading allegations on Kalshi. Wash trading involves simultaneously buying and selling the same instrument to create misleading volume without genuine market interest, distorting price discovery and liquidity metrics. Reports indicated Kalshi's September trading volume reached a record during the period the incentive program was active.
Kalshi operates as a regulated prediction market platform allowing users to trade on the outcome of future events. The move reflects broader challenges prediction market platforms face in balancing liquidity incentives with regulatory oversight of market integrity.
