ChainCatcher reported that according to CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) warned that election gambling on the U.S. election is about to explode, and asked the Court of Appeal to continue to suspend Kalshi's political prediction market while the agency's appeal is still pending.
The district court order has been interpreted by Kalshi and others as “open season on election gambling,” the CFTC said in a filing Saturday, referring to a Sept. 6 ruling that the CFTC should not prevent the company from offering contracts on which political party will control both chambers of Congress.
Following the ruling, Wall Street giant Interactive Brokers announced it would offer contracts on the presidential election through its CFTC-regulated subsidiary, the agency said. The CFTC said other CFTC-regulated exchanges would follow suit unless the U.S. Court of Appeals for the District of Columbia extends its suspension of Kalshi contracts pending appeal.
The CFTC reiterated that “a surge in election gambling on U.S. futures exchanges would harm the public interest.” Those harms include market manipulation and undermining the integrity of the election.
