CFTC Pleads With Judge to Block Kalshi Election Contracts for 14 Days

The Commodity Futures Trading Commission (CFTC) is making a last-ditch effort after losing a court case to U.S. prediction market platform Kalshi. Late Friday, the agency filed an emergency motion seeking a temporary stay of the court’s decision that favored Kalshi, which would block the platform from listing election markets for at least 14 days.

The CFTC previously prohibited Kalshi from offering contracts that would allow betting on which party would control Congress after the November elections, arguing that such contracts constituted unlawful gaming and were contrary to the public interest. In response, Kalshi sued the CFTC, labeling the decision as “arbitrary [and] capricious.”

On Friday, Judge Jia M. Cobb of the U.S. District Court for the District of Columbia ruled in favor of Kalshi but did not provide her reasoning, stating that she would issue a detailed opinion later. The timeline for this opinion remains unclear.

Kalshi celebrated the ruling on its website, announcing the upcoming launch of U.S. election markets. However, the CFTC’s emergency motion requested that Cobb delay her order for 14 days following the release of her opinion, asserting that without understanding the court’s reasoning, the agency cannot make an informed decision about whether to appeal or adequately prepare for a stay motion.

If granted, the stay would prevent Kalshi from listing its election markets until at least late September. The platform has been missing out on this year’s election betting activity, which has largely shifted to crypto-based competitor Polymarket, a platform that is barred from serving U.S. residents due to its own agreement with the CFTC.

A spokesperson for Kalshi did not respond immediately to requests for comment late Friday.