The US Commodity Futures Trading Commission (CFTC) is seeking permission from the court to appeal against the prediction market Kalashi. This step may allow the platform to provide political event contracts to users without any competition.
Lawyer for CFTC for the district of Columbia Circuit on 5 May Filed An unopposed proposal for voluntary dismissal, suggesting an agreement with Kalashi. The proposal, subject to the approval by the court, can abolish the CFTC’s appeal against a federal court, stating that the financial regulator cannot prevent Kalashi from listing the political incident contracts, betting on elections.
If the court rejected the CFTC’s proposal, Kalshi said in a joint filing that the company would “bear its cost, court fees and attorney fees”. Platform Said After the filing, “election markets are to live here” in the post of May 6 “.
The betting platform initially sued the CFTC in 2023, in which the regulator ordered Kalashi to stop the political incident contract offer. The company won the lower court in September 2024, motivating the appeal by CFTC.
Proposal to give up the appeal after change in administration?
The case was mainly handled before the US election and CFTC President Caroline Fam was appointed under President Donald Trump. Former President Joe Biden’s CFTC Commissioner Summer Marsinjar allegedly echoed Kalshi’s spirit in February, claiming that the election forecast markets were “to live here”.
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Launched in 2021, Kalashi 2024 became popular among many crypto users due to bets related to US election. Although CFTC argued in its appeal that betting on elections may result in “spectacular manipulation” of markets and can damage public interest, the regulator under the form and Trump reversed its position with a proposal to dismiss.
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