The United States regulator has urgently filed an emergency motion to block Kalshi, a US prediction market, from offering election betting contracts. The submission comes just hours after the judge's decision to overturn a previous order halting Kalshiâs operations.
According to a Sept. 6 court filing, the US Commodity Futures Trading Commissionâs (CFTC) requested an âemergency stayâ of the courtâs decision that overturned its order to prohibit Kalshi from listing its election contracts for trading on that same day.
CFTC unable to make informed decision without courtâs reasoning
The regulator requested that the court âstay the vacaturâ for 14 days following the issuance of its detailed opinion explaining the denial of the order.
The CFTC argued that without the âbenefit of the Courtâs reasoning,â it is unable to make an informed decision âwhether to appeal, nor is it able to fully brief a motion for stay pending any forthcoming appeal.â
âTime is of the essence in the issuance of a stay. The CFTC expects that Plaintiff Kalshi will immediately list the relevant election contracts and that trading will begin as soon as the contracts list,â the CFTC explained.
It supported its reasoning by pointing out that Kalshi has already announced on its homepage, âElection Markets are Coming to Kalshi!â
Kalshi published an announcement on its website shortly after the judgeâs ruling. Source: Kalshi
The filing comes on the same day as Judge Jia Cobb of the US District Court for the District of Columbia ruling in favor of Kalshi offering products that allow people to bet on who will win the US election on Nov. 4.
Lawyers say ruling was a âhuge winâ for Kalshi
Variant Fund chief legal officer Jake Chervinsky stated in a Sept. 7 X post that Kalshi had a âHUGE win,â but similarly, he would like to see the judicial opinion first.
âI want to see the opinion before I start dancing on the grave of the administrative state, but this is even more evidence that the best way to deal with regulatory overreach is to FILE MORE LAWSUITS,â Chervinsky added.
The CFTC initially submitted the order in September 2023 arguing that âthe CFTC determined the contracts involve gaming and activity that is unlawful under state law and are contrary to the public interest.â
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