**News Flash: Kalshi vs. CFTC Legal Battle Heats Up**

The Commodity Futures Trading Commission (CFTC) is challenging a federal court's decision that allowed Kalshi, a betting market platform, to list election odds. In an Oct. 16 filing, the CFTC argued that the court misinterpreted key terms under the Commodity Exchange Act (CEA) and improperly prevented the regulator from examining certain transactions.

Kalshi had sued the CFTC in November 2023 to overturn an order barring it from listing political event contracts. The platform won in September, but the CFTC appealed and sought an emergency stay, which was denied on Oct. 2. Consequently, Kalshi began listing various election betting contracts.

The CFTC maintains that these contracts are akin to gambling and should be prohibited. The final ruling on the appeal is expedited, with the CFTC's final brief due by Dec. 6. Meanwhile, Kalshi remains in a legal limbo, missing out on significant betting volume enjoyed by competitors like Polymarket.