Catenaa, Tuesday, May 20, 2025-The Commodity Futures Trading Commission (CFTC) has moved to dismiss its appeal against Kalshi, signaling a shift in its approach to regulating election-based prediction markets.
Kalshi, a crypto-based prediction platform, shared the development last week via social media, proclaiming, “Election markets are here to stay.”
The move follows a 2024 federal court ruling that found the CFTC overstepped its authority when it sought to block Kalshi from offering trading contracts on the outcome of the US presidential election.
Kalshi allows users to trade contracts tied to real-world outcomes, including political contests. Its model has faced legal challenges but continued to gain traction among users.
In April, the company struck a partnership with retail trading platform Robinhood to expand access to its prediction markets.
That same month, Kalshi filed lawsuits against gaming regulators in Nevada and New Jersey after being ordered to halt sports-related contracts in those states.
CFTC Commissioner Summer Mersinger, speaking in February, acknowledged the staying power of election-based markets.
Kalshi users can fund accounts using Circle’s USDC stablecoin, reinforcing its ties to the crypto economy.
The CFTC has not issued a public statement on the motion to dismiss. The case underscores ongoing tension between regulators and platforms operating at the intersection of finance, politics and blockchain technology.
