Judge Rules CFTC Lacks Authority to Intervene in Kalshi Political Prediction Market Listing
Publication Time:2024-09-12 22:11:09
Recently, U.S. Federal Judge Jia Cobb of the District of Columbia Circuit Court issued an official opinion clarifying the boundaries of authority for the Commodity Futures Trading Commission (CFTC). In this case, the CFTC had attempted to conduct a 'public interest review' on Kalshi's political prediction market listing to prevent its operation in the United States. However, Judge Jia Cobb's ruling stated that Kalshi's contracts did not involve any illegal activities or gambling, but rather focused on election predictions, thus falling outside the regulatory scope of the CFTC. This decision highlights the limitations of CFTC's power in specific areas, particularly in relation to political prediction markets. Moreover, it is noteworthy that the U.S. Congress has previously revoked the CFTC's right to publicly review certain proposed futures contracts unless these contracts are deemed to involve specific risk categories such as terrorism and gambling. This ruling not only provides legal support for Kalshi but also opens up avenues for the development of similar prediction markets, emphasizing the delineation of functions between different government departments in specific matters.
CFTC
listing
Kalshi
Political Prediction Market
Judge Ruling