Kalshi Approved Margin Trading for Professionals as CFTC Sign-Off Looms

Kalshi has received approval to launch margin trading for professional clients, a significant upgrade for regulated prediction markets. The platform says the new margin trading feature lets selected institutional users (e.g., hedge funds and prop shops) open positions with less capital, improving capital efficiency versus the prior fully-collateralized model. Kalshi plans a staged rollout. New products may start with margin trading first, while core event contracts could remain fully collateralized at launch to manage risk during testing. While margin trading is standard in traditional finance, it remains relatively new in regulated prediction markets. Regulatory approval is still in progress. Kalshi has secured Futures Commission Merchant status, but rulebook changes require Commodity Futures Trading Commission (CFTC) approval before margin trading can go live. CEO Tarek Mansour said approval could arrive soon, and the firm expects tighter identity checks for margin users due to insider-trading concerns. The update also comes as prediction market activity accelerates and funding grows. Kalshi cites sector expansion (The Block: March share of crypto spot volume rose to 2.47% from 0.11% a year earlier) and reported major funding (about $1B), arguing margin trading could further boost liquidity and attract more institutional participation.