US Regulator Halts Appeal in Kalshi Case

The US Commodity Futures Trading Commission (CFTC) is requesting approval from the court to withdraw an appeal against prediction market Kalshi. This action might permit the platform to provide political event contracts to users without opposition.

In a May 5 submission to the US Court of Appeals for the District of Columbia Circuit, attorneys for the CFTC presented an unopposed request for voluntary withdrawal, indicating a potential agreement with Kalshi. The request, pending court approval, could conclude the CFTC’s appeal against a federal court decision that ruled the financial regulator could not prevent Kalshi from listing political event contracts, i.e., wagers on elections.

Kalshi noted in a joint filing that the firm would “assume its own expenditures, court fees and legal costs incurred” if the court accepted the CFTC’s request to withdraw. The platform stated that “election markets are here to remain” in a May 6 X post following the submission.

The wagering platform initially initiated a lawsuit against the CFTC in 2023 as a result of the regulator instructing Kalshi to cease offering political event contracts. The company prevailed in the lower court, leading to the CFTC’s appeal in September 2024.

Request to withdraw the appeal following the shift in administration?

The case was primarily addressed before the US election and the appointment of acting CFTC chair Caroline Pham under President Donald Trump. CFTC Commissioner Summer Mersinger, nominated by former President Joe Biden, reportedly echoed Kalshi’s perspective in February, asserting that election prediction markets were “here to persist.”