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Kalshi adds ex-Obama aide while lawsuits pile up

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Kalshi faces 14-day shutdown in Nevada over gambling laws

Kalshi added Democratic strategist Stephanie Cutter as a policy adviser as the prediction market company faces legal and political pressure in the United States. 

Summary

  • Kalshi hired Stephanie Cutter as policy adviser while facing lawsuits and political scrutiny in Washington.
  • Kalshi is building bipartisan ties as prediction markets face legal challenges from states and lawmakers.
  • Federal and state officials continue fighting over who should regulate event contracts and prediction markets.

The move places another well-known political figure around the company at a time when regulators, lawmakers, and state officials continue to examine prediction markets and event contracts.

Kalshi said Cutter joined from Precision Strategies, the firm she co-founded in 2013. The company said the appointment will help it “deepen its relationships in DC and across the country.” 

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Kalshi co-founder and chief executive Tarek Mansour said Cutter can help the company get its message to the right people because of her experience in government and politics.

Cutter is a longtime Democratic strategist with experience in presidential and congressional politics. Her arrival adds a new policy voice to Kalshi as the company pushes to explain prediction markets to officials and the wider public. Cutter described Kalshi as a data-based platform at a time when public debate is often driven by noise and division.

The appointment also fits a broader effort by Kalshi to build ties across both major US parties. In January 2025, Kalshi named Donald Trump Jr. as a strategic adviser. That move gave the company a Republican-linked figure as it tried to expand its standing in Washington.

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Kalshi opened a Washington office in January 2026 and has since held nearly 200 meetings with lawmakers and officials from across the political spectrum. That outreach shows how closely the company is tying its growth plans to policy work as prediction markets face closer review.

Legal fights keep building

Kalshi’s policy push comes as state and federal authorities continue to clash over who controls prediction markets. Arizona, Connecticut, and Illinois moved against platforms such as Kalshi and Polymarket under state gambling laws. 

In response, the CFTC filed lawsuits arguing that federal law gives the agency “exclusive jurisdiction” over these markets.

Lawmakers have also raised concerns about trading tied to sensitive political and military events. Some Democrats called for more scrutiny after “suspicious trades” linked to the US invasion of Iran. 

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In March, Kalshi said it would add guardrails to block politicians, athletes, and other relevant people from trading in certain markets, aiming to reduce insider trading and manipulation risks.

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Crypto World

ProductionReady’s Jimmy Song Pitches Case for Conservative Bitcoin Software

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Decentralization, Nodes, Bitcoin Adoption

The Bitcoin (BTC) network needs a “conservative” Bitcoin client node software implementation to preserve its monetary properties and strengthen network decentralization, according to Jimmy Song, co-founder of ProductionReady, a non-profit organization funding open source Bitcoin node software development and education.

The organization has a “bias” against significant code changes, unless there is “overwhelming” community support for the change, Song told Cointelegraph.

“The general principle is: if you’re not sure a change makes the money better, don’t make it,” he said. 

Decentralization, Nodes, Bitcoin Adoption
The number of Bitcoin nodes, broken down by software implementation, between 2016 and 2026. Source: Coin Dance

ProductionReady expects to restore the 83-byte OP_Return data limit for arbitrary, non-monetary information in Bitcoin transactions, he said, adding that keeping node storage costs down by limiting arbitrary data is essential to network decentralization. He said:

“The more self-sovereign Bitcoin users are, the more decentralized and resilient the network becomes. That means keeping the cost of running a node low enough for ordinary people to do it. 

“When storage and bandwidth requirements grow, fewer people verify for themselves, and the network centralizes by default. A conservative client takes that tradeoff seriously,” Song continued.

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Maximizing nodes and making them accessible to the average user hardens the Bitcoin network, reducing the chances of cheating by submitting false transactions or a few actors colluding to centralize the network. 

Decentralization, Nodes, Bitcoin Adoption
Bitcoin Core continues to be the software of choice for node runners, with 77.8% of the network running some version of the Core software and 21.8% running Bitcoin Knots. Source: Coin Dance

Related: 72% of subsea cables would need to fail to impact Bitcoin, study shows

Bitcoin Core 30 removes the OP_Return data limit, sparking major pushback

Node storage and onchain spam became hot-button topics in 2025 after Bitcoin Core developers unilaterally changed the 83-Byte data limit in Bitcoin Core version 30, the latest major upgrade to the reference implementation for Bitcoin node software.

The limit was changed to 100,000 bytes despite significant pushback from the Bitcoin community. For context, the proposal to change the limit received about 4 times as many downvotes as it did upvotes, according to the proposal’s GitHub pull request page.

Bitcoin Core 30 went live in October 2025, triggering a historic surge in the number of Bitcoin nodes running Bitcoin Knots, an alternative implementation of the node client software.

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Decentralization, Nodes, Bitcoin Adoption
The number of nodes running Bitcoin Knots surged to record highs in 2025, following the release of Bitcoin Core 30. Source: Coin Dance

There are 4,746 Bitcoin Knots nodes, representing over 21.7% of nodes on the network, according to Coin Dance.

Only about 1% of the network was running the Knots software in 2024 before the decision to remove the OP_Return function was announced.

Magazine: Bitcoin may face hard fork over any attempt to freeze Satoshi’s coins