Why Kalshi Is Fighting a 1958 Onion Law to Expand Prediction Markets

Kalshi, a regulated prediction market, is pushing to repeal a 1958 law that bans futures trading on onions—a rule born from a notorious 1950s price-rigging scheme. The law also blocks markets on box office receipts, limiting what traders can bet on. Kalshi argues the ban is outdated and stifles innovation in event contracts, which let people hedge on everything from elections to weather. The onion law was a response to Vincent Kosuga, a trader who cornered the onion market and caused prices to crash, devastating farmers. Today, Kalshi sees the law as a barrier to offering markets on movie revenues and agricultural commodities. If repealed, it could open new financial products and give farmers modern risk-management tools. The fight highlights a clash between Depression-era financial safeguards and the booming prediction market industry. For now, onions remain a symbol of how old regulations can shape today's markets—and whether they should still apply.