Former congressman George Santos has agreed to pay more than $35,000 in penalties and accept a temporary ban from trading on Kalshi, according to federal regulators. The action centers on trades linked to President Donald Trump’s 2026 State of the Union address.
Regulators said Santos improperly profited from those prediction market positions and concluded that his activity amounted to unlawful manipulation. The case adds to scrutiny over how event-based trading markets are monitored when politically connected figures participate.
Kalshi operates a regulated prediction market where users can trade on the outcome of future events. In this matter, federal officials focused on whether trades tied to a major presidential speech were handled fairly and within market rules.
The settlement means Santos avoids a longer fight with regulators but still faces financial penalties and a temporary loss of access to the platform. The episode is likely to draw more attention to oversight of political event contracts and the boundaries regulators expect traders to respect.
