Kalshi Wins Big As Judge Overrules CFTC, But Agency Seeks 14-Day Block
The post Kalshi Wins Big As Judge Overrules CFTC, But Agency Seeks 14-Day Block appeared first on Coinpedia Fintech News
Kalshi, a platform offering futures contracts on real-world events, has scored a legal win in its ongoing battle with the U.S. Commodity Futures Trading Commission (CFTC) that blocked its plans to offer election betting contracts. This ruling opens the door for Americans to place bets on the outcome of the upcoming Congressional elections, despite the CFTC’s claims of illegal gambling.
Kalshi Wins Over CFTC
Last year in November Kalshi sued the U.S. CFTC which previously blocked Kalshi from offering contracts that would allow people to bet on which political party would control each house of Congress after the November 2024 US elections. Meanwhile, the regulator viewed such contracts as unlawful gambling and against the public interest.
On 6th Sep 2024, U.S. District Judge Jia M. Cobb ruled in favor of Kalshi, giving the company a legal victory. However, the judge has yet to provide the detailed reasoning behind the ruling, which is expected in a forthcoming opinion. The timing of this opinion has not yet been revealed.
Following the court ruling, Kalshi wasted no time in declaring its victory, stating on its website, “We did it! U.S. election markets are coming to Kalshi.” This ruling paves the way for the platform to offer its election-based contracts, something it had been prohibited from doing by the CFTC.
CFTC Seeks 14-Day Delay in the Outcome
Despite the legal victory for Kalshi, the CFTC is not ready to concede just yet. The regulatory body quickly filed an emergency motion requesting the court delay the ruling for 14 days after the publication of the judge’s opinion.
The CFTC argues that it needs time to review the court’s reasoning to determine whether it will pursue an appeal. The commission also needs this time to file a more comprehensive motion to stay the ruling pending any potential appeal.
What’s Next for Kalshi?
If the court grants the CFTC’s request, Kalshi’s election markets will remain on hold until late September at the earliest. This delay comes as Kalshi has already been sidelined from this year’s booming election betting scene, which has been dominated by Polymarket, a crypto-based competitor.
Kalshi’s victory marks a pivotal moment in the fight for regulated election betting markets in the U.S.
