The Commodities Futures Trading Commission obtained an administrative stay order in its case with prediction marketplace Kalshi.
The Commodities Futures Trading Commission (CFTC) has obtained an administrative stay of a recent court order in its case with prediction marketplace Kalshi.
This administrative stay has forced Kalshi to halt its just-launched US election trading pending when the court sufficiently considers the CFTC’s motion.
The predictions market is booming due to the crypto community’s enthusiasm over the likely winner of the upcoming election. Therefore, Kalshi could miss significant revenue by halting its election trading, which went live barely 24 hours ago.Court Order Forces Kalshi to Halt Election Prediction Market
The US District Judge Jia Cobb sided with Kalshi in its case against the CFTC. The judge said the watchdog acted outside its jurisdiction by banning the prediction marketplace from listing election contracts.
This ruling allowed Kalshi to list derivative contracts for betting on the likely winner of the November elections. However, the CFTC kicked against this ruling, arguing that it needs to know the rationale behind the judge’s decision to determine whether to appeal the case.
The agency requested a 14-day stay of the order pending Judge Cobb’s full opinion.
