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Following court battles with the CFTC, Kalshi has won approval to list prediction contracts on which political party will dominate Congress.
Kalshi, the sole U.S.-regulated prediction market, can resume listing its Congressional event contracts in America, a United States Court of Appeals for the District of Columbia Circuit ruled on Oct. 2.
The startup, regulated by the Commodity Futures Trading Commission (CFTC), has been battling the CFTC in court since at least last year. Kalshi sued the agency for denying permission to offer election outcome prediction markets at the time.
According to the CFTC, permitting betting on elections could <a href="https://crypto.news/cftc-scrutinizing-kalshi-congressional-control-contracts-to-ensure-fairness-and-compliance/" target="_blank" rel="noopener noreferrer nofollow">impact</a> political results and harm the public interest. Last month, a lower court ruled that Kalshi could list markets focused on the U.S. Congress.
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/kalshi-wins-case-against-cftc-still-faces-shutdown/"> Tough times for prediction markets: Kalshi wins case against CFTC, still faces shutdown </a>
Hours after fielding the contracts on Sept. 13, the CFTC won a stay order, and the exchange was <a href="https://crypto.news/kalshi-wins-case-against-cftc-still-faces-shutdown/" target="_blank" rel="noopener noreferrer nofollow">forced</a> to pause its Congressional event markets while the CFTC launched an appeal. However, Circuit Judge Patricia Millet dissolved the administrative stay and denied the commission’s motion, declaring that the CFTC failed to prove irreparable public damage would occur without the pause.
Unlike Polymarket, Kalshi settles bets in U.S. dollars, although the firm onboarded crypto-related events earlier this year. Its victory over the CFTC in the Congressional markets case could pave the way for its presidential election markets, too, as Kalshi founder Tarek Mansour <a rel="noopener noreferrer nofollow" href="https://x.com/mansourtarek_/status/1841485986271760709" target="_blank">said</a> on X after the ruling.
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 US presidential election markets are legal. Officially. Finally. Kalshi prevails. <a rel="noopener noreferrer nofollow" href="https://t.co/jvObcQDczz" target="_blank">pic.twitter.com/jvObcQDczz</a>— Tarek Mansour (@mansourtarek_) <a href="https://twitter.com/mansourtarek_/status/1841485986271760709?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 2, 2024</a>
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Meanwhile, rivals like Polymarket have claimed market share in the U.S. election prediction betting scene. Polymarket data was <a rel="noopener noreferrer nofollow" href="https://crypto.news/bloomberg-to-onboard-polymarket-election-data/">integrated</a> into Bloomberg’s terminal, and its bettors have <a href="https://polymarket.com/event/presidential-election-winner-2024?tid=1727884114068" target="_blank" rel="noopener noreferrer nofollow">placed</a> over $1 billion in wagers on who the next American president will be.
Polymarket’s success has galvanized a new batch of players to consider the on-chain betting industry. Market maker Wintermute plans to <a href="https://crypto.news/wintermute-to-launch-polymarket-competitor-with-chaos-labs/" target="_blank" rel="noopener noreferrer nofollow">launch</a> its prediction market in collaboration with Chaos Labs.
Read more: <a rel="noopener noreferrer nofollow" href="https://crypto.news/what-is-prediction-market-in-crypto/"> What are prediction markets in crypto? </a>

Kalshi election betting markets to resume, court rules

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