Kalshi files to end volume incentive program amid wash-trading scrutiny
Kalshi filed to terminate its volume incentive program no earlier than Oct. 13, according to CFTC filings. The self-certification filing, dated Sept. 28, ends the program under Kalshi Rule 3.13(f) nearly a year ahead of schedule. The move follows allegations that the rewards structure fueled wash trading and artificially inflated volume, including over $5 billion in disputed ether perpetual futures trades. The CFTC reviewed but did not itself order the termination. Kalshi set a monthly volume record of $52.98 billion in September as of Sept. 29. Separate market-maker agreements and perpetual fee arrangements remain unaffected.
Kalshi now surrenders the primary tool it used to build headline volume. Traders who discounted the September figures because of rebate-driven inflation will treat future numbers as cleaner — but also smaller. Rivals with more transparent incentive structures can pitch themselves as the honest venue during the NFL season's peak betting window.
The filing does not resolve the CFTC's review of $5 billion in ether perpetual trades. That unresolved cloud still hangs over product approvals and could slow new listings. Kalshi keeps market-maker and fee agreements, so the move is tactical retreat rather than full transparency conversion. Platforms watching from the sidelines learn that self-certification beats waiting for a regulator-ordered shutdown.