KALSHI WINS: COURT BLOCKS CFTC FROM SHUTTING DOWN PREDICTION MARKETS
The D.C. Circuit Court of Appeals has temporarily blocked the CFTC from enforcing its order against Kalshi, allowing the prediction market platform to continue offering event contracts tied to elections and other real-world outcomes. This decision marks a significant setback for the CFTC’s efforts to restrict access to regulated betting on political events, giving Kalshi breathing room while the full appeal plays out.
The lawsuit began when Kalshi challenged the CFTC’s denial of its self-certification for election contracts, arguing that the agency exceeded its authority by treating these contracts as contrary to public interest. The CFTC had claimed these contracts involved illegal gambling elements and could be used for election interference, thus justifying its ban. The court reviewed an emergency motion for a stay, focusing on whether the CFTC’s reasoning was likely to stand up to judicial review.
The judges sided with Kalshi on the emergency request, finding that the company demonstrated a strong likelihood of success on the merits and that the CFTC’s order would cause irreparable harm to Kalshi’s business. The court concluded that the CFT