CFTC Pleads With Judge to Block Kalshi Election Contracts for 14 Days

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CFTC Pleads With Judge to Block Kalshi Election Contracts for 14 Days
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Last year, the CFTC forbade Kalshi from listing contracts betting on which party would control each house of Congress after the November election. Such contracts, the agency said, would amount to unlawful gaming and would be"contrary to the public interest." Kalshi thenhanded down Friday, Judge Jia M. Cobb, of the U.S. District Court of the District of Columbia, sided with Kalshi but did not give her rationale, which she said she would spell out in a subsequent opinion.

"Without the benefit of the Court’s reasoning, the CFTC is unable to make an informed decision whether to appeal, nor is it able to fully brief a motion for stay pending any forthcoming appeal," the agency wrote. If granted, the stay would mean Kalshi wouldn't be allowed to list its election markets until late September at the earliest. The company, which settles trades in U.S. dollars, has been locked out of this year's election betting boom, dominated by crypto-based rival Polymarket, which is barred from serving U.S. residents under its own settlement with the CFTC.in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin.

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