September 9, 2024
Kalshi predicts that delaying the election betting contract could be disastrous for the company
Kalshi, the U.S. prediction market platform, has predict that delaying the listing of election betting contracts for 14 days would cause "irreparable harm" to the company. In a court filing, Kalshi emphasized that its future depends on being able to list these contracts before November 5, when Americans cast their votes. The CFTC has requested an additional delay for listing, but Kalshi argues that this is "meritless." The company recently won a lawsuit against the CFTC over a ban on listing contracts predicting control of Congress.
Kalshi's predicting about the delay in listing election betting contracts could have far-reaching effects on the cryptocurrency market, particularly Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). As investors worry that regulatory measures may tighten and slow the development of betting and prediction platforms, this could lead to instability in riskier assets like cryptocurrencies.
In the context of betting contracts related to significant events, this delay could undermine investor confidence in the growth potential of blockchain applications in the financial sector. If Kalshi fails to list the betting contracts in time, negative sentiment may spread, applying downward pressure on the prices of BTC, ETH, and SOL. Investors might interpret this as a sign that the government could intervene more aggressively in emerging financial activities, prompting them to withdraw capital from these assets.
Conversely, if Kalshi wins the lawsuit and continues its operations, optimism could drive capital into these cryptocurrencies. Investors would see growth opportunities in a developing market, especially as platforms like Kalshi could add value to transactions and predictions. The advancement of prediction platforms could increase demand for cryptocurrencies as a means of payment, thereby stimulating their value.
