With just one month left until the upcoming U.S. election, Kalshi, a prediction market platform, has received the green light to once again offer contracts on which party will control each house of Congress.
Recently, the U.S. Court of Appeals for the District of Columbia rejected a motion by the Commodity Futures Trading Commission (CFTC) to pause the contracts while the agency appeals a previous ruling in favor of Kalshi.
According to Circuit Judge Patricia Millett, “The Commission has not proven that it or the public will face irreparable harm without a stay pending appeal, therefore, the motion for a stay is denied without prejudice, allowing for potential renewal with supporting evidence. The administrative stay has been lifted.”
After winning the case in the lower court, Kalshi relisted the contracts on September 13. However, trading was briefly halted when the appeals court granted an administrative stay, which has now been lifted.
Kalshi, the only U.S.-regulated prediction market, took legal action against the CFTC last year after its application to list election contracts was denied on the grounds of being considered gaming and against the public interest.
“While the decision on the merits is complex, the Commission’s inability to prove irreparable harm during the appeal process has led to the denial of a stay request. Demonstrating irreparable harm is pivotal for such a request,” stated the judge.
Despite the ongoing legal battle, Kalshi, based in New York and settling bets in dollars, has witnessed its competitor Polymarket, powered by cryptocurrency, achieve record volumes in this election season. Polymarket, though unable to operate in the U.S., has seen over $1 billion in stakes on its presidential election contract alone.
A spokesperson for Kalshi informed CoinDesk that the company does not have a specific timeline for relisting the contracts but plans to do so “very soon.”