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U.S. CFTC Files Emergency Motion to Prevent Kalshi from Listing Election Prediction Contracts

U.S. CFTC Files Emergency Motion to Prevent Kalshi from Listing Election Prediction Contracts

Bitget2024/09/07 22:22

The U.S. Commodity and Futures Trading Commission (CFTC) has filed an emergency motion seeking to block prediction marketplace Kalshi from listing election contracts for two weeks while the agency handles an appeal.

The motion was filed before a judge announced the dismissal of the lawsuit and allowed Kalshi to list prediction contracts related to the 2024 election. The CFTC, in its motion filed at midnight last night, asked for an emergency stay of the judge's ruling for at least two weeks to allow the agency to pursue its appeal.

Paradigm, a crypto venture capital firm, has reportedly filed an amicus brief in support of Kalshi's lawsuit, noting that there are two main benefits to offering such contracts. “First, they allow parties directly affected by political outcomes to mitigate risk by hedging. Second, they provide information that allows the public to better predict (and thus plan for) a given outcome.”

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