The U.S. Commodity Futures Trading Commission (CFTC) has announced the conclusion of its dispute with the Kalshi platform by withdrawing its appeal. This decision marks a definitive victory for Kalshi, which had previously faced a ban on accepting bets on political events. Such restrictions posed significant financial losses, especially in light of the upcoming elections in fall 2024.
This is reported by Finway
In its statement to the Appeals Court, the CFTC noted that the decision to withdraw the appeal was voluntary and agreed upon with Kalshi. As part of the agreement, the platform has committed to relinquishing any legal claims that may have arisen from the conflict.
“Today is a historic day. We have always believed that doing the right thing, no matter how difficult and painful it may be, pays off. This outcome is proof of that. Kalshi’s approach has officially and definitively secured the future of prediction markets in America,” said Kalshi CEO Tarek Mansour in a comment to CNBC.
This move effectively gives Kalshi the “green light” to offer clients bets on political events. Unlike its competitor Polymarket, Kalshi is registered in the U.S. and is authorized to serve local clients.
However, not everyone supported the CFTC’s decision. The advocacy group Better Markets, which sided with the Commission, accused it of neglecting public interests:
“This decision was bad law and even worse policy, as it threatens the integrity of our federal elections, promises a new wave of market manipulation and investor losses, and places the CFTC in a role of oversight over elections, for which this small agency lacks both resources and experience,” the statement read.
By withdrawing the appeal, the CFTC has effectively solidified the lower court’s ruling as a precedent. It is worth noting that the Commission had banned Kalshi from placing bets on Congressional elections in September 2023. In response, the platform filed a lawsuit and won, but the CFTC requested a delay to prepare its appeal.