CFTC: Prediction Markets Are Vulnerable to Manipulation

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The CFTC is making another attempt to halt Kalshi from offering prediction markets on the upcoming November elections after losing its first case against the company.

Despite the initial ruling that the agency had overstepped its authority in banning the contracts, the CFTC has continued to fight to keep its rule in place while appealing the decision.

Even though a district court judge allowed the contracts to be offered, the CFTC quickly appealed to the DC Circuit Court of Appeals, causing Kalshi to temporarily suspend its election contracts.

Now, the CFTC is arguing that the ruling should be put on hold during the appeals process, claiming that the potential financial losses for Kalshi are insignificant compared to the potential damage of allowing election gambling on US futures markets.