Dissatisfied with the ban on Kalshi’s election contract, it was judged to be “overstep of authority”! The U.S. CFTC quickly filed an appeal

A U.S. district judge earlier ruled that the Commodity Futures Trading Commission (CFTC)'s move to block the prediction market platform Kalshi's election contract "exceeded its authority" and determined that the CFTC had no authority to ban Kalshi from listing prediction contracts related to the U.S. election. In response, the CFTC has quickly File an appeal.

Lawyers representing the CFTC had hinted they would appeal the case in a virtual hearing Thursday morning. During the hearing, CFTC attorneys told U.S. District Court Judge Jia M. Cobb of the District of Columbia:

We are requesting an administrative stay (a carefully scrutinized device used to freeze legal proceedings) to maintain the status quo in order to allow this court or the Court of Appeals sufficient time to consider the CFTC's upcoming motion to stay. .

Earlier in the day, Judge Jia M. Cobb ruled that the CFTC "exceeded its authority" by blocking Kalshi from listing U.S. election-related contracts. The CFTC last year banned Kalshi from providing derivative contracts for "betting on the results of congressional elections" on the grounds that it "involved illegal gambling" and was "contrary to the public interest." Kalshi then filed a lawsuit against the CFTC in November.

Judge Cobb ruled again in Kalshi’s favor last week, overturning the CFTC’s order barring Kalshi from listing the Congressional Contract for trading. Shortly after, the CFTC filed a motion asking for an emergency stay of the judge’s ruling for at least two weeks, during which time the CFTC would seek to appeal.

At Thursday's hearing, CFTC lawyers warned that "the integrity of the election" would be at risk. He said:

The Commission (CFTC) has noted that in the current context of low confidence in the integrity of elections, it is concerned that this may have an adverse impact on the integrity of the election, or the perception of the integrity of the election. The contracts would offer market participants $100 million in incentives to influence markets or elections, which would certainly undermine confidence in the integrity of the election.

"This is a very serious public interest risk," the lawyer added.

The CFTC previously argued that Kalshi's election contract involved gambling, which was illegal and "contrary to the public interest." In a ruling handed down on Thursday, Judge Cobb determined that Kalshi's contract did not involve "illegal activity or gambling." In his opinion, Cobb stated:

The Court concluded that Kalshi's congressional election contract did not involve illegal activity or gambling. Therefore, this Court has no reason to consider whether they are contrary to the public interest.

〈Dissatisfied with the blocking of Kalshi’s election contract and it was judged to be “overstep of authority”! The U.S. CFTC quickly filed an appeal. This article was first published on Blockchain.