According to ChainCatcher, Rostin Behnam, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), said that the CFTC will continue to advocate that Kalshi’s election contracts are illegal and warned of possible negative consequences.
The CFTC has appealed a court ruling last week that it overstepped its authority in opposing Kalshi’s listing of election-related contracts. Behnam argued that having the CFTC oversee election contracts could lead to the agency being drawn into investigating election-related fraud or manipulation, which is beyond the CFTC’s remit.
He also said the CFTC is closely monitoring overseas prediction markets that serve U.S. customers and will take enforcement action if any violations are found.
Previously, the prediction market Polymarket reached a settlement with the CFTC for not registering with it and agreed to withdraw from the US market.
