CFTC to review Kalshi market’s Congress control betting contracts.
On June 26, the Commodity Futures Trading Commission will decide whether to start a formal 90-day review of KalshiEX’s contract, which allows users to bet on which party will take control of the U.S. Congress. The CFTC is responsible for overseeing the company as a designated contract market, and the legal process by which the agency can approve or reject contracts is through 90-day reviews. Kalshi had submitted the contract for CFTC review last year, but recently withdrew that original request. Now, the exchange is returning to the agency with a new submission.
These particular cash-settled, binary contracts would allow users to predict and bet on which parties would have majority control of each of the two chambers of Congress. Prediction markets, which allow people to buy and sell contracts on whether events are going to happen or not, as Kalshi describes it on its site, have had a tumultuous recent history with the CFTC. Other companies, such as Polymarket and PredictIt, had been ordered to cease doing business in the U.S., with PredictIt fighting the CFTC in court since last year.
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