A federal judge has ruled that Americans can use financial market instruments to bet on U.S. election outcomes, overturning a prohibition by the Commodity Futures Trading Commission (CFTC). This decision favors Kalshi, a New York-based predictions market, which sued the CFTC for exceeding its authority by blocking election betting contracts. Judge Jia Cobb emphasized that Kalshi's contracts do not involve unlawful gaming, and the CFTC's concerns about public interest do not justify their prohibition. Critics, including the CFTC, argue that this ruling could incentivize malicious activities aimed at influencing election results, undermining public trust. The CFTC plans to appeal the decision, but Kalshi has already begun offering these election bets.