BBB refers prediction market Kalshi to state regulators over ad inquiry

Crypto Insight Summary: The Better Business Bureau's National Advertising Division (NAD) is referring prediction market platform Kalshi to state regulators, including Attorneys General, for possible enforcement action after the company declined to participate in a voluntary inquiry into its social media advertising practices. The NAD review examined whether Kalshi's influencers and affiliates clearly disclosed paid relationships in social media promotions and whether the company complied with Federal Trade Commission endorsement guidelines. The BBB will also notify the social media platforms where the advertising appeared, following the platform's refusal to engage in the self-regulatory process. Crypto influencer John Wang joined Kalshi in August, and the company has faced separate scrutiny from Media Matters for America over TikTok and Instagram campaigns promoting prediction trading as a "side hustle." Kalshi remains on track for a $1.5 billion annualized revenue run rate and recently closed a $1 billion funding round valuing the company at $22 billion. The platform continues to operate amid an ongoing jurisdictional dispute between state regulators and the Commodity Futures Trading Commission (CFTC) over event contracts, as well as insider trading allegations. A May Bernstein report argued the prediction market sector is entering an "institutional" era, citing improved liquidity and price discovery on Kalshi. Crypto Insight Analysis: Direction: Bearish Kalshi Impact: Minor Impact Horizon: Short-term (1-3 days) Reasoning: Regulatory scrutiny and referral to state AGs could damage reputation and user trust.