CFTC Seeks to Block Kalshi's Election Contracts After Losing Court Battle

Following its loss in court against prediction market platform Kalshi, the Commodity Futures Trading Commission (CFTC) has filed an emergency motion to prevent Kalshi from launching election contracts within two weeks while the agency pursues its appeal.

The CFTC argues that Kalshi could potentially launch regulated election contracts as early as Tuesday morning, after self-certifying the contracts on Monday and waiting the required one business day. The CFTC is concerned that if the contracts begin trading, its ability to stop trading or otherwise remove the contracts will be severely limited.

Previously reported, Kalshi, a regulated prediction market platform, won its lawsuit against the CFTC, concerning the platform's ability to offer predictions regarding the U.S. election. Kalshi, which operates solely within the United States, requires CFTC approval or review for each prediction contract it launches.