Kalshi, a prediction market platform, ended its advisory contract with Donald Trump Jr. after his venture capital firm, 1789 Capital, acquired a stake in rival prediction market Polymarket.
Conversations about the exit began in August when 1789 Capital announced its investment in Polymarket. Both Kalshi and Trump Jr. mutually agreed the arrangement created a conflict of interest, according to Kalshi's spokesperson.
Trump Jr. remains an advisor to Polymarket despite leaving Kalshi. He had served as a strategic advisor to Kalshi starting in January 2025.
Kalshi CEO Tarek Mansour said in October that Trump Jr.'s connection to the company creates an "optics issue," though he noted the company has never relied on that relationship to gain favor with the government.
The departure follows Democrats securing control of both chambers of Congress, with the party expected to crack down on the prediction market industry. Joseph Konizeski, a former trial attorney at the CFTC, previously told CNBC that Trump Jr.'s ties to the industry could make prediction markets an easy target for lawmakers.