CFTC Warns of Exploding Election Betting, Seeks Stay on Kalshi Political Prediction Market

The Commodity Futures Trading Commission (CFTC) has warned of an impending surge in election betting related to the US elections and has asked the appeals court to keep a hold on Kalshi's political prediction market while the agency's appeal remains pending.

In a filing on Saturday, the CFTC stated that the district court's order has been interpreted by Kalshi and others as "open season for election gambling," referring to a September 6th ruling that concluded the CFTC shouldn't block the company from offering contracts on which party would control both houses of Congress.

The agency claims that following this decision, Wall Street giant Interactive Brokers announced it would offer contracts on the presidential election through its CFTC-regulated subsidiary. The CFTC stated that unless the US Court of Appeals for the District of Columbia prolongs the suspension on Kalshi's contracts while the appeal is pending, other CFTC-regulated exchanges are likely to follow suit.

The CFTC reiterated its stance that "a surge in election gambling on US futures exchanges would harm the public interest." These harms include market manipulation and undermining the integrity of elections.