Judge grants temporary stay in Kalshi vs. CFTC election betting case
A federal judge has issued a temporary administrative stay on a decision that would allow prediction market Kalshi to list bets on U.S. elections.
In a minute order filed on Sept. 9, Judge Jia Cobb of the U.S. District Court for the District of Columbia said the court would hold a hearing on Sept. 12 to address competing motions from the U.S. Commodity Futures Trading Commission (CFTC) and Kalshi.
This temporary stay, granted at the request of the CFTC, halts an earlier decision permitting Kalshi to list election-related contracts.
“This Order does not represent a ruling on the merits of [the CFTC’s] motion for a stay but instead grants a temporary administrative stay of three days until the conclusion of the upcoming hearing,” the court docket noted.
Kalshi filed the case against the CFTC in November 2023, challenging the regulator's decision to bar the platform from listing bets based on U.S. election outcomes, such as which political party will control the House of Representatives and Senate in 2025.
On Sept. 6, Judge Cobb initially allowed the platform to list these contracts but later stayed the order following an emergency motion from the CFTC.
The CFTC argues that allowing betting on election outcomes could undermine market and election integrity.
“One purpose of the Commodity Exchange Act is preventing disruptions to market integrity,” the CFTC stated.
They further argued that if trading began on these contracts and then a stay was granted pending appeal, it could lead to “a disruptive market event.”
The controversy over betting on election outcomes has drawn broader attention.
Polymarket, another prediction platform, lists contracts based on whether Democratic nominee Kamala Harris or Republican Donald Trump will win individual states or the presidential election.
This practice raises concerns over how perceived odds might influence voter behavior, echoing the CFTC’s warnings about potential threats to election integrity.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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