NEW YORK - Predictions marketplace KalshiEX LLC sued the U.S. Commodity Futures Trading Commission on Wednesday, saying the regulator overstepped its bounds when it rejected a proposal to use derivatives contracts to bet on congressional control.
The CFTC banned Kalshi from listing and clearing its cash-settled political event contracts in September, concerned that they would involve unlawful gaming and other activities not in the public's interest. "It is undeniable that election outcomes have consequences for everyone; they play a pivotal role in determining our collective future," the complaint read.
Following September's order rejecting Kalshi's contracts, CFTC Chair Rostin Behnam said they would require the CFTC to act as an"an election cop" which is not part of its mandate.