Kalshi is negotiating a new funding round at a $40 billion valuation, nearly doubling its $22 billion valuation from a $1 billion raise just two months ago.

Tarek Mansour said to CNBC's "Squawk Box" it made sense for the company at the stage to think about a debut on public markets.

Kalshi's rapid valuation surge highlights the growing tension between innovative financial platforms and traditional regulatory frameworks.