Kalshi onboards ex-Democratic strategist amid legal troubles

Stephanie Cutter will join the prediction markets company as a policy adviser, having previously worked in Democratic lawmakers’ campaigns.

Predictions market platform Kalshi announced that a former staffer of US President Barack Obama had joined the company as a policy adviser.

In a Thursday notice, Kalshi said Stephanie Cutter would join the prediction markets company from Precision Strategies, a communications firm she co-founded in 2013. Kalshi said the addition of Cutter came as the company planned to “deepen its relationships in DC and across the country.”

According to Kalshi co-founder and CEO Tarek Mansour, Cutter’s experience allowed her to “get [the] message to the right people,” highlighting her background in government and politics. The predictions market already has staff with ties to the US government, including the appointment of the president’s son, Donald Trump Jr., as a strategic adviser in January 2025, the week before his father took office.

In the last year, Kalshi has come under scrutiny from many US state-level authorities, who have filed lawsuits against the platform and other companies offering event contracts on prediction markets for sports, alleging that they constituted illegal bets.

Under Trump nominee Michael Selig, the US Commodity Futures Trading Commission (CFTC) has claimed that the agency has the “exclusive jurisdiction” to oversee such markets, filing lawsuits against state gaming regulators.

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Many Democrats in US Congress have also called for scrutiny into prediction markets after what they called “suspicious trades” related to the country’s invasion of Iran. Although Kalshi and Polymarket announced plans in March to implement guardrails to prevent accounts from using insider information, some lawmakers introduced legislation that could ban politicians from engaging in such bets on prediction markets.

As of Friday, none of the bills proposed in Congress had been signed into law, and it was unclear what the outcome would be for many of the state-level lawsuits.

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Source: CoinTelegraph