The U.S. Commodity Futures Trading Commission on Friday rejected a proposal by predictions marketplace KalshiEX LLC to use derivatives contracts to bet on congressional control, calling it “contrary to the public interest.”
The CFTC said Kalshi’s cash-settled political event contracts would involve unlawful gaming, and it has therefore banned them from being listed or available for clearing or trading.
In a statement accompanying the order, CFTC Chair Rostin Behnam said Kalshi’s contracts would have required the CFTC to use its oversight and enforcement power as if it were “an election cop” and in other ways that are not part of its mandate.
