U.S. Election Betting: CFTC, Kalshi Both Grilled by Judges in Appeals Court
A recent hearing saw a panel of judges questioning attorneys representing the U.S. Commodity Futures Trading Commission (CFTC) and prediction-betting platform Kalshi over the company’s plans to launch political prediction markets in the United States. The judges did not give any indication of whether they would allow Kalshi to offer these products, as they reviewed a lower court’s ruling on the matter.
The case has drawn significant attention due to its implications for the regulation of prediction markets, which allow users to bet on the outcomes of various events, including political elections. Critics argue that such markets could be used for manipulation or insider trading, while proponents believe they provide valuable information and serve as a form of free speech.
During the hearing, the judges pressed both sides on the potential risks and benefits of allowing political prediction markets to operate in the U.S. They also questioned Kalshi’s compliance with existing regulations and its efforts to mitigate potential harms associated with the markets.
Ultimately, the decision on whether Kalshi will be permitted to offer political prediction markets in the U.S. will have far-reaching consequences for the future of the industry. As the case continues to unfold, stakeholders on all sides will be closely watching to see how the judges rule and what it could mean for the broader landscape of prediction betting in the country.
