No Ruling from Appeals Court in US Election Betting Case

Kalshi, the regulated exchange and prediction market platform that offers trading on the outcome of real-world events, was cleared to start offering “contracts” on political events last week. This came after a ruling by Judge Jia Cobb.

However, Kalshi’s win was short-lived as the Commodity Futures Trading Commission (CFTC) filed an appeal with the Court of Appeals for the District of Columbia Circuit. This saw the court issue a temporary freeze order, effectively putting election betting once again on hold.

The Court of Appeals Heard the Arguments of the Two Sides

On Thursday this week, the Court of Appeals heard the case but did not reach a decision on whether to permit such bets, as announced by the Associated Press. Thus, betting on the US election currently remains on hold, subject to a decision of the Court of Appeals.

During the recent hearing each of the sides presented their arguments. A panel consisting of three judges heard the appeal of the CFTC as well as the arguments made by the regulated exchange and prediction platform, Kalshi.

Considering the upcoming Presidential Election, Kalshi is eager to solve this legal hurdle and start offering wagering on the outcome. The platform doesn’t offer betting per se as it provides “future contracts,” enabling it to offer its services in a legal grey area in the country.

On the other hand, the CFTC argues that betting on the outcome of the upcoming elections may impact the process as attempts for manipulation may arise. When it comes to the CFTC, its efforts are focused on ensuring the integrity of the upcoming elections by preventing betting.

Election Betting Remains on Hold with No Timetable for the Court’s Decision

Despite the recent hearing, as noted, no decision was reached. While the two sides want the issue resolved ahead of the upcoming election, the Court of Appeals did not provide a timeline for their decision.

Although Kalshi was able to offer betting on the outcome of the election for several hours before the CFTC’s appeal, the platform accepted approximately $50,000 worth of wagers. It is unclear how the upcoming decision may affect those wagers.

In case the company loses the legal battle against the CFTC, those future contracts may be void. Alternatively, if the Court of Appeals sides with Kalshi, this year’s elections may be the first one Americans can legally place bets on.

Recently, Donald Trump became the first US president to complete a Bitcoin transaction. This reaffirmed his positive view on cryptocurrency and marked a historic moment in US politics, considering his participation in the Presidential Election.