As the U.S. presidential election heats up, the U.S. Commodity Futures Trading Commission (CFTC) warned of an impending outbreak of election gambling and asked a court to extend a ban on political prediction markets pending appeals against prediction market platform Kalshi, a company regulated by the CFTC and It provides a prediction market platform that allows users to predict the outcomes of various events by purchasing contracts. It is similar to a traditional exchange and is also traded in legal currency. Kalshi applied for the listing of election prediction contracts last year, but was banned by the CFTC. Subsequently, this A company filed a lawsuit with the CFTC, asking the court to review its election contract products.
After the court ruled on September 6 that the CFTC should not prevent Kalshi from offering election prediction contract commodities, the CFTC jumped out to warn that this ruling was regarded by Kalshi and others as a green light for election gambling. After this ruling came out, the financial institution Interactive Brokers also announced that it would offer presidential election contracts through CFTC-regulated subsidiaries, showing that the market for election predictions is very large, but there are also many legal disputes.
The CFTC is asking the court to continue extending its injunction or else other CFTC-regulated exchanges will follow suit, which would cause harm to the public interest, including market manipulation and harm to election integrity. The CFTC also proposed banning election contracts on all exchanges it regulates. The court’s ruling could impact this proposal and also have an impact on the crypto industry where “prediction products” are ubiquitous.
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〈MICA Daily｜CFTC Warning: Presidential election prediction contract gambling is about to break out〉 This article was first published on "Blocker".
