U.S. CFTC Chairman Rostin Behnam said the agency will continue to prove that Kalshi’s political prediction election contracts are illegal and warned of possible negative consequences. Behnam said the agency also plans to keep a close eye on offshore prediction markets.
U.S. District Court Judge Jia M. Cobb of the District of Columbia ruled last week that the CFTC overstepped its authority in blocking prediction market Kalshi from listing contracts related to the U.S. election. The CFTC quickly appealed the ruling and warned of the risks associated with election gambling. The appeals court will decide Thursday whether to keep the contracts in place, Behnam said Tuesday at Georgetown University’s Financial Market Quality Conference.
Behnam said: "We think this situation is illegal. We will continue to move forward with the lawsuit." He also said that giving the CFTC a role in overseeing election contracts could have a negative impact. "I just don't think Congress or the public wants a financial federal regulator to oversee elections." (The Block) #zachxbt
