CandleFocus

U.S. Election Betting: What's at Stake in Final (?) CFTC-Kalshi Showdown

Author: Content Editor
The U.S. Commodity Futures Trading Commission (CFTC) will hear arguments in an emergency motion filed by the CFTC regarding a prediction market case. Last week, the CFTC lost a lawsuit filed against it by prediction market Kalshi. The CFTC has asked for a two-week delay before listing election markets, pending an opinion explaining the judge's ruling in favor of Kalshi. Depending on the outcome of the hearing, Kalshi may be cleared to launch its election markets as soon as Friday. There is also the possibility that the judge or appeals court could grant another stay if the CFTC decides to appeal, which could delay the launch of Kalshi's election markets for up to a year. The CFTC is also considering a rule to prohibit election contracts at all exchanges under its jurisdiction. Proponents of prediction markets argue that they provide accurate predictions from unbiased experts. At present, the only company that can legally operate political prediction markets in the U.S. is PredictIt. However, unregulated venues such as Polymarket have experienced significant activity in political betting.

Related News