Prediction market exchange Kalshi has officially ended its strategic advisory contract with Donald Trump Jr. The move comes after 1789 Capital, the venture capital firm where Trump Jr. serves as a partner, expanded its investment commitment to Kalshi’s main rival, Polymarket.
A Kalshi spokesperson confirmed that an agreement to terminate the advisory role had been under discussion since August 2026. Those talks began right when 1789 Capital led a new funding round for Polymarket. The fresh capital injected by the firm brought its total investment commitment in Polymarket to around $500 million, jumping from an initial investment of about $200 million.
Two Advisory Seats at Competing Exchanges
Trump Jr.’s relationship with Kalshi dates back to January 2025. Upon his initial appointment, he was tasked with assisting in market strategy formulation, securing partnerships, and expanding user acquisition for the prediction contract exchange.
The initial appointment also came with equity. According to a Financial Times report, Trump Jr. received $300,000 worth of Kalshi shares in the early stages of the partnership. However, the current status of that equity stake has not been disclosed publicly.
Trump Jr.’s involvement in the prediction market industry expanded seven months later. In August 2025, he formally joined Polymarket’s advisory board. His position across both rival camps finally changed a year later, when his investment firm led a new funding round for Polymarket.
Federal License Victory and Tight CFTC Oversight
This separation of roles comes while Kalshi occupies a distinct position in the prediction market regulatory landscape. Kalshi operates as a federally licensed exchange under the oversight of the US Commodity Futures Trading Commission (CFTC).
Its federally licensed operations previously triggered legal disputes against state-level gambling laws. Kalshi secured legal certainty on July 27, 2026, when the Minnesota District Court issued a preliminary injunction upholding the federally registered exchange’s position over state gambling laws.
Even with the federally registered exchange prevailing in court, oversight from federal regulators remains stringent. The CFTC previously issued a warning in September 2026 regarding the high manipulation risks associated with prediction contracts based on specific individual actions or mentions of particular words.
For prediction market industry participants, this parting of ways sharpens the competitive lines between platforms. Amid the battle for event contract liquidity, a $500 million capital commitment to one camp ultimately demanded clarity of allegiance from its advisers.
Via crypto.news.
Also read: Trump Admits Still Co-Owning World Liberty Financial - Claims No Knowledge of $500M UAE Investment
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