A storm of controversy is brewing over a recently announced partnership between CNN and Kalshi, a platform allowing users to trade on the outcomes of future events. Congressman Abe Hamadeh has voiced serious concerns, warning of potential threats to the very foundations of American democracy and national security.
In a direct appeal to the Commodity Futures Trading Commission (CFTC), Hamadeh outlined his fears in a strongly worded letter. He argues the alliance creates a dangerous conflict of interest, giving CNN unprecedented power to influence public perception surrounding critical events – elections, international conflicts, and even domestic unrest.
The core of the concern lies in CNN’s potential to shape news coverage around events already listed as tradable markets on Kalshi. This, Hamadeh contends, opens the door for manipulation, allowing both foreign adversaries and domestic groups to profit from escalating tensions or influencing outcomes for competitive gain.
Hamadeh didn’t mince words, describing the partnership as “outright dangerous” and expressing a lack of surprise that a news organization with a history of questions regarding accuracy would entertain such an arrangement. He fears it could be exploited to amplify narratives and pressure institutions for financial benefit.
The Congressman specifically pointed to existing markets – offered by a competitor, not Kalshi directly – that allow betting on deeply sensitive events, such as mass starvation in Gaza or potential military actions by Israel. He believes these types of markets fundamentally violate the Commodity Exchange Act, which prohibits contracts involving war or anything contrary to public interest.
Hamadeh is demanding answers from the CFTC, requesting a full assessment of the partnership’s potential vulnerabilities. He wants to know if the Commission is investigating whether this alliance could allow external actors to influence U.S. politics, economics, and national security for profit.
Kalshi has responded to the accusations, asserting that Hamadeh’s concerns are misplaced. They claim the controversial markets he cited are actually hosted on a competitor’s platform, and that their own internal rules explicitly prohibit CNN employees from trading on contracts where CNN provides information.
A search of Kalshi’s current offerings reveals markets focused on questions like potential changes in U.S. aid to Israel and the future leadership of Israel, rather than direct predictions of military strikes. However, the fundamental concerns raised by Congressman Hamadeh regarding the potential for manipulation and influence remain.
Hamadeh has given the CFTC a 30-day deadline to respond, demanding a detailed outline of their assessment and planned course of action. The situation is rapidly unfolding, and the outcome could have significant implications for the intersection of media, finance, and national security.
