Gemini

United

<p><span style="font-weight: 400">A United States judge has ruled in favor of Kalshi, a platform known for offering derivatives tied to real-world events. This </span><a href="https://news.bloomberglaw.com/antitrust/cftc-order-blocking-kalshi-election-bets-overturned-by-us-judge" rel="noopener noreferrer nofollow"><span style="font-weight: 400">ruling</span></a><span style="font-weight: 400"> allows Kalshi to introduce derivatives contracts for betting on the results of the upcoming U.S. elections, scheduled for November 2024. The decision effectively overturned a previous order from the U.S. Commodity Futures Trading Commission (CFTC), which had sought to block such activities.</span></p>
<p><span style="font-weight: 400">This decision has been heralded as a victory for Kalshi and the broader industry. Jake Chervinsky, chief legal officer at Variant Fund, took to social media platform X, </span><a href="https://x.com/jchervinsky/status/1832243985705779671" rel="noopener noreferrer nofollow"><span style="font-weight: 400">calling</span></a><span style="font-weight: 400"> it a “HUGE win.”</span></p>
<p><span style="font-weight: 400">Chervinsky added that while the ruling was a positive step, he would like to review the court’s full opinion before celebrating, stating that this case highlights how lawsuits can effectively push back against regulatory overreach.</span></p>
<h2 id="span-style-font-weight-400-cftc-s-concerns-overturned-span"><span style="font-weight: 400">CFTC’s Concerns Overturned</span></h2>
<p><span style="font-weight: 400">The CFTC had previously argued that allowing people to bet on U.S. election outcomes would undermine the integrity of the democratic process. They also noted that in certain U.S. states, election betting is considered illegal. However, the court disagreed, with Judge Jia Cobb of the U.S. District Court for the District of Columbia ruling that Kalshi’s election contracts could legally be offered.&nbsp;</span></p>
<p><span style="font-weight: 400">The judge’s ruling marks the first time in over a century that election-related markets will be legally permitted in the U.S.</span></p>
<h2 id="span-style-font-weight-400-regulatory-battle-not-over-span"><span style="font-weight: 400">Regulatory Battle Not Over</span></h2>
<p><span style="font-weight: 400">While Kalshi’s win marks a turning point, the regulatory battle may not be over. The CFTC retains the option to appeal the decision. If they choose to do so, the legal process could extend further, possibly delaying Kalshi’s election offerings until after the court’s final decision.</span></p>
<p><span style="font-weight: 400">This ruling also resonates with ongoing </span><a href="https://thecoinrise.com/crypto-giants-unite-against-looming-cftc-prediction-market-ban/" rel="noopener noreferrer nofollow"><span style="font-weight: 400">debates surrounding decentralized prediction markets</span></a><span style="font-weight: 400">. Recently, Gemini co-founder Cameron Winklevoss urged the CFTC to withdraw a proposed regulation that would ban all event contracts in the U.S. This proposal would impact platforms like Polymarket, which hosts prediction markets for a variety of events, including </span><a href="https://thecoinrise.com/us-lawmakers-urged-cftc-to-implement-a-ban-on-election-betting/" rel="noopener noreferrer nofollow"><span style="font-weight: 400">political outcomes</span></a><span style="font-weight: 400">.</span></p>
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    <p>Kalshi’s court victory may inspire similar legal challenges from other platforms, solidifying the role of prediction markets in the U.S. economy.</p>
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<p>The post <a href="https://thecoinrise.com/us-judge-overturns-cftc-ban-allows-kalshi-to-offer-election-betting-contracts/" rel="noopener noreferrer nofollow">US Judge Overturns CFTC Ban, Allows Kalshi to Offer Election Betting Contracts</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.</p>

US Judge Overturns CFTC Ban, Allows Kalshi to Offer Election Betting Contracts

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