CFTC moves to drop appeal in Kalshi's event contracts case
The U.S. Commodity Futures Trading Commission on Monday moved to drop its appeal of a court decision that allowed New York derivatives trading platform KalshiEX LLC to list contracts Americans can use to bet on election outcomes.
The CFTC asked to allow it to voluntarily dismiss the case, agreeing that each party to the lawsuit will bear its own costs and fees, according to a filing in the U.S. Court of Appeals for the D.C. Circuit on Monday.
Related Knowledge Center: Prediction markets
Platforms are offering a way for users trade positions — place bets — on a wide range of possible events, and newsrooms are starting to incorporate the data.
As the business rapidly grows, critics and opponents are pushing back. Numerous states have argued that the markets are gambling, and sports gambling in particular is regulated by the state. The Commodity Futures Trading Commission, now led by a Trump appointee, disagrees — as did a federal district court judge in a suit involving New Jersey.
Critics see some of the markets as, particularly in the case of military actions, indefensible, and note as well that some large, well-timed bets — “event contracts” — suggest an abuse of insider knowledge of federal actions.