CFTC Rejects Kalshi's Proposal to Gamble on Elections and Control of U.S. Congress

The Commodities Futures Trading Commission (CFTC) has rejected KalshiEX, LLC's proposal to allow gambling on U.S. elections through event contracts. The CFTC deemed the proposal a violation of the Commodities Exchange Act and a clear violation of public policy, particularly in light of concerns about election integrity. The CFTC emphasized that derivatives markets are meant to support commercial enterprises, not serve as casinos for speculation. Allowing betting on elections could incentivize election interference and illegal conduct. Better Markets, a non-profit organization, supports the CFTC's decision and is prepared to support them in court if necessary.