A US lawmaker has raised serious concerns about a partnership between CNN and the prediction market platform Kalshi, saying it could threaten markets and national security. Congressman Abe Hamadeh of Arizona wrote to Caroline Pham, the acting chair of the Commodity Futures Trading Commission CFTC, asking for urgent review of the deal.

In his letter, Hamadeh said the partnership “poses direct and foreseeable threats to market integrity, democratic stability, and American national security.” He said his concerns reflect those of constituents who are worried about a major news organisation having influence in financial markets tied to global events.

Concerns From Constituents and Media Influence

The congressman said he was speaking for voters who have “raised alarm bells about a media company with a long-documented record of partisan manipulation now positioning itself to influence and profit from geopolitical events in real time.” He said this raises serious ethical and regulatory concerns that cannot be ignored.

Hamadeh also warned that the partnership is “not merely inappropriate; it is outright dangerous.” He said CNN’s role as a major global news outlet gives it strong influence over public perception, meaning it could shape how people understand events tied to Kalshi markets and create conflicts of interest and risks for  the markets and public understanding.

Risk of Conflicts and Market Manipulation

Hamadeh said CNN’s role could go beyond just reporting the news. He said “CNN would be uniquely positioned to shape public perception and news cycles around the very events Kalshi lists as tradable markets.” These events could include elections, war, foreign policy crises, and domestic instability.

He added that no other major media company has made a similar deal, creating a built-in conflict of interest. Hamadeh warned this setup could let a powerful media company or even foreign actors influence outcomes for financial or strategic gain.

Regulatory Questions and Call for Action

Hamadeh referred to the Commodity Exchange Act, saying it requires the CFTC to block contracts connected to war, gaming, or those contrary to the public interest. He said this also covers markets that could be manipulated or influence the events they are based on.

He highlighted concerning media reports, noting that “one recent Kalshi betting market allowed people to bet on whether Palestinians in Gaza would suffer mass starvation,” as well as on when Israel would bomb Gaza, bomb the West Bank, or annex land. Hamadeh said: “The situation is chilling, and I have questions.”

The congressman asked what the CFTC is doing to review the partnership, especially regarding information conflicts and event manipulation. He has given Pham 30 days to explain the commission’s review and detail any actions it plans to take on the CNN Kalshi deal.