Prediction Market Kalshi Sues CFTC After Denial of Congressional Election Betting Contracts

Kalshi is suing the CFTC for denying its request to offer event contracts for betting on U.S. Congressional election outcomes.

Kalshi argues these contracts allow businesses and individuals to hedge risk related to political events.

The CFTC denied the request, saying the contracts are unlawful gaming contrary to public interest.

Another prediction market, PredictIt, has been allowed to operate under a CFTC no-action letter.

Critics say Kalshi's contracts could undermine integrity of U.S. elections amid existing concerns.