U.S. CFTC Chairman warns of election gambling risks, says he is closely watching overseas prediction markets

Rostin Behnam, chairman of the U.S. CFTC, said the agency will continue to prove that Kalshi's political prediction election contracts are illegal and warned of possible negative consequences. Behnam said the agency also plans to keep a close eye on offshore prediction markets. U.S. District Court Judge Jia M. Cobb of the District of Columbia ruled last week that the CFTC's move to prevent prediction market Kalshi from listing contracts related to the U.S. election was an overreach. The CFTC quickly appealed the ruling and warned of the risks associated with election gambling. Behnam said at the Georgetown University Financial Market Quality Conference on Tuesday that the appeals court will decide on Thursday whether to keep the contracts. "We believe this situation is illegal. We will continue to advance the lawsuit in this way," Behnam said. He also said that giving the CFTC a role in overseeing election contracts could have negative effects, "I just don't think Congress or the public wants a financial federal regulator to oversee elections." (The Block)