The CFTC requested that the court prevent Kalshi from providing election wagering contracts until it has reviewed the rationale behind the denial of its order.
The United States regulator has submitted an emergency motion to prevent Kalshi, a prediction market in the United States, from providing election wagering contracts. The submission is just hours after the judge’s decision to reverse a previous order that had temporarily halted Kalshi’s election markets.
In a court statement on September 6, the US Commodity Futures Trading Commission (CFTC) asked for a “emergency stay” of the court’s decision to reject its order to stop Kalshi from putting its election contracts on the market.
The regulatory body asked the court to “stay the vacatur” for a period of 14 days after it issued its full opinion rationalizing its decision to overturn the ruling.
The CFTC contended that it is incapable of making an informed decision regarding whether to appeal or to completely brief a petition for stay pending any upcoming appeal in the absence of the “benefit of the Court’s reasoning.”
The granting of a stay requires prompt action. The CFTC said that they anticipate Plaintiff Kalshi listing the relevant election contracts shortly and that trading will commence upon listing.
It substantiated its argument by noting that Kalshi has already declared on its homepage, “Election Markets are Coming to Kalshi!”
Judge Jia Cobb of the US District Court for the District of Columbia ruled in favor of Kalshi offering products that enable people to wager on the winner of the US election on Nov. 4, the same day as the filing.
Jake Chervinsky, the chief legal officer of Variant Fund, stated in a Sept. 7 X post that Kalshi had a “HUGE victory.” However, he also expressed his desire to see the judicial opinion first.
Chervinsky also said, “I want to see the ruling before I start dancing on the grave of the administrative state, implying that filing additional lawsuits is the most effective method of dealing with regulatory excess.”
The CFTC first submitted the order in September 2023, claiming that the contracts are “contrary to the public interest” and entail gambling and activity that is unlawful under state law.
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