A United States judge has ruled in favor of predictions market Kalshi, allowing the platform to offer derivatives for betting on the upcoming US election in November, overturning the regulator’s previous order, according to a recent report.
Variant Fund chief legal officer Jake Chervinsky stated in a Sept. 7 X post that it was a “HUGE win” for Kalshi, but he would like to see the judicial opinion first.
“I want to see the opinion before I start dancing on the grave of the administrative state, but this is even more evidence that the best way to deal with regulatory overreach is to FILE MORE LAWSUITS,” Chervinsky added.
US judge overrules CFTC’s order
Published by Bloomberg on Sept. 7, Judge Jia Cobb of the US District Court for the District of Columbia reportedly ruled in favor of Kalshi offering products that allow people to bet on who will win the US election on Nov. 4.
The ruling overturned the US Commodity Futures Trading Commission’s (CFTC) order, which had argued that offering the derivatives would compromise the integrity of the election and that election gambling is illegal in certain US states.
“Election markets are now legal in the United States for the first time in 100 years,” Kalshi co-founder and CEO Tarek Mansour said.
Meanwhile, crypto fund 1confirmation founder Nick Tomaino opined that it is “great news for anyone who believes skin in the game is an important part of being American.”
CFTC has the opportunity to appeal decision
The CFTC will have the opportunity to appeal the decision, according to the report.
On March 18, Cointelegraph reported that Kalshi was launching prediction contracts for its clients, enabling bets on Bitcoin (BTC) and Ether (ETH) price movements.
Other contracts include a prediction on how high Bitcoin will reach in 2024 and one on the daily BTC price.
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Meanwhile, in more recent news, on Aug. 8 crypto exchange Gemini urged the CFTC to withdraw a proposed regulation that, if passed, would ban all event contracts on decentralized prediction markets.
“The CFTC should withdraw its Proposed Rule on event contracts, which would categorically ban all event contracts in the U.S., like those traded on Polymarket, the world’s largest prediction market,” Gemini co-founder Cameron Winklevoss wrote.
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