00:00We know that Kalshi has hinted so much on new products, new launches this year.
00:05Can you name to us a few of what you're planning to roll out?
00:08I guess top of mind for a lot of folks is Perpetual Futures.
00:11Is that something you're looking into entering?
00:13Sure. So, I mean, we've already entered.
00:15We've just launched the first regulated Perpetual Futures product here in the United States.
00:20And the interest has been pretty astronomical.
00:23We've seen $14 billion in volume already on Perpetual Futures contracts that are on Kalshi.
00:28You know, I can't preview too much of the work that we do with regulators.
00:32And we like to, you know, get things right with our regulators at the CFTC on products before we list
00:37them.
00:37But it's certainly a space that we're exploring.
00:39I think there's a lot of retail and institutional interest in Perpetual Futures.
00:44And we're likely to see that continue to grow.
00:46Another thing that's always on people's minds is insider trading, at least when it comes to platforms like these.
00:53So how do you distinguish between legitimate informed trading versus insider trading?
00:57And we know there's also talks with Congress like, are you going to ban people who may have special knowledge
01:03that the public does not know?
01:05So, you know, one of the great things about being head of enforcement at an exchange like Kalshi is we're
01:10U.S. regulated.
01:11And so I think your previous guest noted there's other exchanges that are offshore, but we're onshore.
01:15And we already prohibit a great deal of the activity that Congress has taken steps to legislate and prohibit.
01:22So we prohibit members of Congress from trading on our platform.
01:25U.S. law already prohibits members of the U.S. government from insider trading on information that they have.
01:31It has been exciting to watch Congress explore legislating in this space.
01:35And we're largely supportive of efforts to prohibit, you know, congressional staff to the extent that it's appropriate.
01:40We don't think that bans on prediction markets altogether for government employees or congressional staff are fair, right?
01:46You can think of a staffer maybe trading on sports or trading on crypto as not necessarily implicating any insider
01:52government information.
01:53But I do think, you know, we're largely supportive of legislative efforts to target those contracts where they may have
02:00insider information.
02:00And we do that work on the exchange to prohibit and detect that activity already.
02:04And we also know that several businesses have challenged, several states rather, have challenged Kalshi's business.
02:10Are you prepared to fight every state that tries to stop you?
02:13Or is there a state that you think you will do good in?
02:16Versus, like, when you probably may not be for now.
02:20I think the nice thing about federal law and it preempting state law means that your argument is the same
02:26across all the states, right?
02:27So regulated exchanges are regulated by federal law in the United States when they're licensed by Commodities Futures Trading Commission
02:35or SEC.
02:36And you see, you know, I think our litigation in many states has mirrored the same arguments, which is that
02:42the CEA and the implementing regulations that are imposed by the CFTC are what govern derivatives exchanges and designated contract
02:50markets like Kalshi.
02:52So, you know, we're prepared to fight that fight wherever we have to.
02:55We're confident in our legal arguments, but we're letting that process play on the courts.
02:59How many legal disputes is Kalshi managing today?
03:03Any big company manages a great deal of disputes, so I don't have a hard count for you.
03:07But we're certainly engaged in litigation across the U.S. on this issue.
03:10Would you say that's the biggest headache that you have from where you sit?
03:14You know, I don't think of it as a headache.
03:15I think any new product requires exploring the legal parameters around what actually governs that product.
03:21A big part of my job at Kalshi has been educating folks, whether they be courts, whether they be just
03:26individuals or legislators in Congress, about exactly how the CFTC regulations and the legislation under the Commodity Exchange Act govern
03:34what happens on our exchange.
03:35So I think it's a natural process that's occurring, but certainly it takes up a lot of time.
03:40Yeah, I'm sure.
03:41Talk to us about your international expansion.
03:43What have you learned from markets like Brazil and India?
03:46Has your international strategy changed this year?
03:48Is there a market where you really think you will be big?
03:50We're very invested in our interactions with international regulators.
03:55And so our approach has always been regulatory first.
03:58Here in the United States, we didn't list certain contracts until we were able to win in court over the
04:02CFTC, right?
04:03We fought for election contracts and we won, and only then did we list them.
04:07We didn't list any contracts until we had a regulated licensed exchange.
04:10And so that approach will stay the same, whether it's here in the U.S. or abroad.
04:14We are engaged with a lot of international regulators, and we're excited for some developments on that front in the
04:19next 12 months or so.
04:21So given that, I mean, for example, here in the U.S., elections were really what made prediction markets mainstream.
04:28Are you thinking of – how are you thinking of the next event?
04:30What will it be that will push maybe Kalshi to the next level?
04:34You never really know.
04:35The World Cup has turned out to be a very exciting event on Kalshi.
04:38We've seen a lot of interest in that.
04:40The midterm elections are coming up.
04:41We recently just launched the first ever U.S. index based on political markets.
04:47And so KPOW, K-P-O-W, is a power index in the United States that measures the sentiment of
04:52political control based on our markets.
04:55And so I imagine the midterm elections are going to be one of the next big events that happens on
04:59prediction markets.
05:00That's exciting.
05:00We have around one minute to go, and I can't let you go without asking you that you've raised significant
05:05capital.
05:07Do you still think that another private fundraising round is the next for you, or is it going to be
05:11an IPO?
05:12And how is the company thinking about that?
05:14Any company with growth that we've been fortunate enough to experience is considering all possible options, including an IPO.
05:22But right now we're really focused on growing the brand and growing our user base.
05:28And we've seen a lot of positive metrics in that direction.
05:30That continues to remain our primary focus.
05:32Tarex had said it may be next year.
05:35Well, that's more Tarex's decision than mine.
05:37I just handle, you know, the legal issues and the insider trading.
05:40But it's been an exciting time, certainly, to be at Galsh.
05:43So not out of the horizon, I guess.
05:45You know, we're considering all types of options.
05:47But we are now doing characters with the России and the people working on them.
05:47So when we look at the출ف, thislex hand...
05:47Great, thank you.
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