In June, Kalshi sought to list contracts that would let users bet on whether a particular party will control the House of Representatives and Senate in a given term.
But in a complaint, filed in the U.S. District Court for the District of Columbia, Kalshi argued that the contracts contain no unlawful acts prohibited under the Commodity Exchange Act and therefore, the CFTC has no power to block them.
Kalshi CEO and cofounder Tarek Mansour told Reuters: "Access to tools for actively managing election risks is exclusively reserved for institutions and the wealthy, leaving the average American behind. Our contracts will level the playing field for all." He added that while it makes sense for the agency to combat things like fraud in commodity markets, it is impractical to do so when the underlying market is a political contest.
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