Kalshi, a U.S.-regulated prediction market platform, won its federal lawsuit against the Commodity Futures Trading Commission (CFTC) over a plan to offer contracts on which party will control each house of Congress after the November 2024 election. Although the CFTC could appeal, Kalshi, which had been locked out of this year's election betting boom while the case was pending, can now grab a sliver of that action in the last two months before the election.

The ruling represents a victory for advocates of prediction markets, in which traders bet on the outcomes of real-world events ranging from elections to album sales to temperature increases. Prediction markets are popular in crypto circles, and although Kalshi does not use cryptocurrency, the crypto industry has been watching the case closely.

Last year, the CFTC forbade Kalshi from listing the Congressional control contracts, on the grounds that they would amount to unlawful gaming and would be "contrary to the public interest." Kalshi then sued, calling the regulator's decision "arbitrary [and] capricious." In a ruling handed down Friday, Judge Jia M. Cobb, of the U.S. District Court of the District of Columbia, sided with Kalshi, vacating the CFTC's order and allowing the company to offer the contracts.

Source: https://www.coindesk.com/policy/2024/09/06/kalshi-cleared-to-offer-congressional-prediction-markets-in-victory-against-cftc/

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