Kalshi's Legal Tussle With CFTC Nears End as Regulator Drops Appeal
The U.S. Commodity Futures Trading Commission (CFTC) will not appeal a court decision allowing Kalshi to accept bets on U.S. election outcomes, ending a two-year legal battle. The CFTC filed a motion to drop its appeal with the U.S. Court of Appeals for the District of Columbia after a vote. Kalshi's founder stated that this decision affirms the legitimacy of election markets. Both parties will cover their court and attorney fees. The CFTC's decision aligns with a broader trend of reduced regulatory oversight under President Trump, who appointed pro-crypto leaders to the Commission. Kalshi has expanded its election-based markets and integrated crypto payments. The legal saga began when Kalshi sought permission for event contracts on congressional races, which the CFTC initially denied, citing concerns over democratic influence. After suing the CFTC, a District Court ruled in favor of Kalshi, allowing it to offer election-based contracts, which were briefly paused but later resumed.
