Kalshi Hits Unicorn Status Amid Regulatory Shift for Prediction Markets

Kalshi, the federally regulated prediction market platform, has crossed the $1 billion valuation threshold with a $100 million funding round led by Paradigm. The crypto investment giant's backing signals institutional confidence in regulated event contracts—a sector once mired in legal uncertainty.

The funding follows a pivotal regulatory retreat. In May, the Commodity Futures Trading Commission dropped its opposition to Kalshi's political event contracts after a federal judge ruled the agency overstepped its authority. The reversal clears a path for US-regulated election betting markets.

Timing reveals strategic positioning. Kalshi's unicorn leap coincides with rival Polymarket's rumored $200 million raise, setting the stage for a showdown between regulated and unregulated prediction platforms. Market dynamics now favor compliance—Paradigm's bet underscores that calculus.