Kalshi, CFTC Face Off Over Political Betting Markets (1)

Prediction market Kalshi Inc. and the Commodity Futures Trading Commission made their case to an appeals court that will help decide whether trading on political markets should be banned.

The three-judge panel grappled with whether Congress gave the CFTC the authority to regulate election betting and how to define “gaming.”

“I feel like a dog chasing its tail trying to figure out the statute,” said Judge Robert Wilkins, an Obama appointee, during oral arguments on Friday at the US Court of Appeals for the DC Circuit.

Election-themed derivatives contracts like Kalshi’s catapulted to public prominence ahead of the November US ...