U.S. Election Betting: Court Clears Kalshi Congressional Contracts

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U.S. Election Betting: Court Clears Kalshi Congressional Contracts
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Marc Hochstein is CoinDesk's Deputy Editor-in-Chief for Features, Opinion, Ethics and Standards. He holds BTC above CoinDesk's disclosure threshold of $1K and de minimis amounts of other digital assets (details in bio).

With a month to go before the U.S. election, prediction market Kalshi just got cleared to resume listing its contracts on which party will control each house of Congress.

Following its long-sought victory in the lower court, Kalshi listed the contracts on Sept. 13. They traded for only a few hours before the appeals court granted an administrative stay, which it lifted Wednesday. While it's been fighting the agency in court, the New York-based company, which settles bets in dollars, has watched crypto-powered rival Polymarket, which is barred from doing business in the U.S., nevertheless rack up record volumes during this election year. Over $1 billion alone has been staked on Polymarket's contract on who will win the presidency.

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