US appeals court judges have questioned lawyers for the Commodity Futures Trading Commission (CFTC) and betting platform Kalshi in a hearing reviewing a lower court ruling examining their plans to launch political betting markets.

In a hearing held in the DC Circuit Court of Appeals on September 19, CFTC general counsel Rob Schwartz and Kalshi’s attorney Yaakov Roth argued the lower court’s decision allowing Kalshi’s election markets.

During the hearing, the judges frequently intervened in Schwartz and Roth’s arguments, trying to clarify some definitions. They questioned why the CFTC views election betting differently than other types of betting and how it interprets the phrase “competition by others.”

Schwartz said the lower court’s September 12 ruling was seriously flawed, saying it would have allowed Kalshi to place large bets on congressional elections. Roth argued that the risk could have been reduced with regulatory provisions.

The judges are expected to make a quick decision. Share your thoughts in the comments!