CFTC To Continue Pursuing Case Against Kalshi's Election Contracts

According to CoinDesk, following a recent court defeat, the U.S. Commodity Futures Trading Commission (CFTC) remains committed to pursuing its case against Kalshi's election contracts, which it deems illegal. CFTC Chairman Rostin Behnam emphasized the agency's stance during a financial policy event at Georgetown University's Psaros Center for Financial Markets and Policy, stating, 'This is a situation that we think is against the law. We will continue to make that case.' Last week, Federal Judge Jia Cobb of the District of Columbia court ruled that the CFTC had overstepped its authority by banning Kalshi from listing U.S. political prediction markets. These markets involve bets on which party might control the House of Representatives or win the White House in any given term. Subsequently, a U.S. federal appeals court halted Kalshi's new political prediction markets after the CFTC requested an emergency stay, with a hearing scheduled for Thursday. Behnam reiterated the potential risks of the CFTC overseeing U.S. elections in cases of market manipulation, suggesting that such oversight could lead to dangerous outcomes. The agency is currently in the process of rulemaking that would implement a blanket ban on prediction markets within its regulated businesses. Behnam suggested that if election betting is to be allowed, it should be regulated at the state level within the gambling industry. 'If folks really want to see these markets emerge, scale and develop ... it should be done at the state level within the gambling industry,' he said.