Written by Felix Ng staff editor Edited by Yohan Yun staff editor

The prediction markets operator says the issue involves procedural errors affecting a handful of contracts, many of which weren’t live, according to Politico.

Prediction markets operator Kalshi is being warned of imminent charges from the US Commodity Futures Trading Commission over whether the operator properly notified the agency about new products, Politico reported Tuesday.

The Commodity Futures Trading Commission is investigating notifications involving dozens of products, the report said , citing a person with direct knowledge of the probe. The agency’s private notification to Kalshi suggests that charges could follow.

Speaking to Politico, Kalshi spokesperson Elisabeth Diana described the matter as a procedural error involving submissions for a handful of contracts, many of which never went live.

The potential enforcement action comes as the CFTC fights to establish its exclusive authority over prediction markets, including by challenging state efforts to regulate Kalshi.

Separately, Kalshi is backing the regulator in a separate legal battle over its authority. On Monday, the company joined Coinbase and four other firms in seeking permission to file a brief supporting the CFTC’s treatment of perpetual futures tied to individual US stocks.

Related: Coinbase, Kalshi join lawsuit backing CFTC over US stock perp futures

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