Court Clears Kalshi's Congressional Betting Markets

A federal appeals court has cleared the way for Kalshi, a prediction market platform, to offer betting on the outcome of U.S. Congressional elections, despite opposition from the Commodity Futures Trading Commission (CFTC). The CFTC had previously blocked these contracts, arguing they could undermine election integrity and violate gambling laws. However, the court ruled that the CFTC did not provide sufficient evidence of irreparable harm, with Judge Patricia Millett noting the concerns but stating the CFTC has not substantiated these risks. Kalshi's markets, which allow bets up to $100 million, have previously only operated for a short period before being halted by legal challenges. The ruling represents a significant moment for financial markets and could potentially expand to presidential election markets in the future.