CFTC Order Blocking Kalshi Election Bets Overturned by Judge (1)

A federal judge cleared a path for Kalshi Inc. to let Americans use derivatives on its exchange to bet on November’s election — throwing a wrench in a top US regulator’s crackdown.

The order from Judge Jia Cobb on Friday paves the way for Kalshi to start offering products that let people bet on which party will win control of Congress. The Commodity Futures Trading Commission, which oversees the exchange, had ordered Kalshi not to offer the derivatives.

Kalshi hailed the move as a watershed moment that would let Americans trade on the election in a US-regulated market. “Election markets ...