Election Betting Case: CFTC to Continue Pursuit Despite Court Defeat
Following the recent court defeat of the U.S. Commodity Futures Trading Commission (CFTC) in its pursuit of Kalshi’s election contracts, Chairman Rostin Behnam has affirmed that the agency will persist in its case against what it deems as illegal activity.
“This is a situation that we believe violates the law,” Behnam stated at a financial policy event held at Georgetown University’s Psaros Center for Financial Markets and Policy. “We will continue to advocate for our position.”
Last week, Federal Judge Jia Cobb ruled that the CFTC had overstepped its bounds by prohibiting Kalshi from offering U.S. political prediction markets, which involve betting on outcomes such as party control of the House of Representatives or the White House. Subsequently, a U.S. federal appeals court temporarily halted Kalshi’s new political prediction markets at the request of the CFTC, with a hearing scheduled for Thursday.
Behnam emphasized the CFTC’s stance that regulating U.S. elections for market manipulation is a precarious path to tread. The agency is currently in the process of formulating a rule that would impose a blanket ban on prediction markets within its purview.
Regarding the utility of election betting, Behnam suggested that oversight should be handled at the state level within the gambling industry if there is a demand for such markets to flourish and evolve.
Key Points:
- Despite a court setback, the CFTC remains committed to pursuing the case against Kalshi’s election contracts.
- Federal Judge Cobb ruled that the CFTC had overreached in prohibiting U.S. political prediction markets.
- The CFTC is advocating for a state-level approach to overseeing election betting if deemed necessary.
For further details, read: Kalshi’s New Political Prediction Markets Halted as CFTC Appeals Loss