The post Kalshi’s U.S. 2024 Election Contracts Halted Amid Legal Battle with CFTC appeared on BitcoinEthereumNews.com.

The prediction market Kalshi is currently facing a judicial delay in offering contracts linked to the upcoming U.S. 2024 election. This dispute stems from ongoing tensions between Kalshi and the U.S. Commodity Futures Trading Commission (CFTC), which has been scrutinizing event contracts more closely in recent years. “This Order does not represent a ruling on the merits of Defendant’s motion for a stay but instead grants a temporary administrative stay of three days until the conclusion of the upcoming hearing,” stated Judge Jia M. Cobb. As the legal battle between Kalshi and the CFTC unfolds, the future of prediction markets tied to political events hangs in the balance amid increased regulatory scrutiny. Kalshi’s Legal Challenge Against the CFTC’s Authority Kalshi’s recent legal developments underscore a significant standoff between the prediction market and the CFTC. A district judge’s ruling last week had initially allowed Kalshi to proceed with offerings related to congressional elections, only to be met with a swift response from the CFTC seeking an emergency stay. The three-day temporary administrative stay indicates the delicate balance being navigated between innovation in financial markets and regulatory oversight. The CFTC claims that allowing such contracts could extend its mandate beyond traditional financial oversight into the realm of electoral integrity, an aspect that has raised eyebrows in the regulatory landscape. Impact of Regulatory Stance on Event Contracts The CFTC’s increased focus on event contracts falls amidst rising popularity and usage of prediction markets by the public. These platforms, including Kalshi and Polymarket, allow participants to speculate on the outcomes of future events, including political elections and even entertainment releases. CFTC Chair Rostin Behnam has expressed concern regarding the potential implications of expanding these markets, stating, “Allowing these contracts would push the CFTC, a financial market regulator, into a position far beyond its Congressional…

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Filed under: News - @ September 9, 2024 10:17 pm