Kalshi Seeks $40 Billion Valuation As CME Lawsuit And State Legal Battles Mount

Kalshi is looking to raise more money — and at a significantly higher price tag than just weeks ago. According to the Financial Times, the prediction market platform is in discussions to close a new funding round at a valuation of $40 billion. People familiar with the matter told the FT the round could close as early as the third quarter of this year.

Kalshi Doubles Its Valuation Twice In A Year 

Kalshi raised $1 billion at a $22 billion valuation just last month — a round that drew in a roster of Wall Street and Silicon Valley backers, including Philippe Laffont’s Coatue, Sequoia Capital, Andreessen Horowitz, and Morgan Stanley. 

The $22 billion figure was itself nearly double the $11 billion valuation the company carried in December 2025, which had already doubled from the $5 billion it was worth earlier that same year. However, the company’s growth has met significant opposition as well. 

CME Group, the derivatives exchange that handles some of the most widely traded futures contracts on Wall Street, filed suit last week against the Commodity Futures Trading Commission (CFTC) over its decision to approve Kalshi’s perpetual futures contracts. 

Those contracts allow users to make wagers on cryptocurrency prices, putting them in direct competition with CME’s own futures products. CME argues the approval was improper and poses a direct threat to its business.

But beyond potential competitors, several US states, which retain substantial authority over gambling regulation within their borders, have moved against Kalshi as the company has expanded. 

Lawsuits Already Started 

In March, Arizona filed criminal charges against Kalsi, accusing the platform of running an unlicensed gambling operation and offering illegal wagers tied to election outcomes. 

A Massachusetts judge went further in February, barring Kalshi from offering sports-related markets in that state altogether, citing public health and safety grounds.

Kalshi is contesting both cases and maintains that its products are not gambling at all — but rather event contracts that fall squarely under the jurisdiction of the Commodity Futures Trading Commission as financial derivatives. 

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