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Kalshi Severs Its Relationship With Donald Trump Jr.
The New York Times • • business
Key Points:
- Kalshi announced that Donald Trump Jr. will no longer serve as an adviser after his investment firm, 1789, heavily invested in Polymarket, Kalshi’s main competitor, leading to a mutual decision to part ways.
- It remains unclear whether Trump Jr. will retain shares in Kalshi, which were part of his compensation and are now valued in the millions.
- The split followed 1789’s significant $300 million investment in Polymarket, adding to an earlier $200 million, which complicated Trump Jr.'s advisory role with two competing firms.
- The Trump administration has supported prediction markets like Kalshi, but faces scrutiny and investigations over potential conflicts of interest and regulatory decisions favoring Kalshi.
- The Commodity Futures Trading Commission has authorized Kalshi to offer new types of trading, prompting lawsuits from trading clearinghouses and legal battles with states over regulatory authority, with Trump Jr. publicly backing Kalshi’s regulatory stance.
