TechFlow news, on September 13, according to Coindesk, Kalshi's newly launched political prediction contracts were suspended just hours after going live. Previous report, on the morning of September 12, Judge Jia Cobb of the District of Columbia court ruled that the U.S. Commodity Futures Trading Commission (CFTC)'s ban on Kalshi listing U.S. political prediction markets exceeded its authority. Kalshi subsequently launched its first U.S. political prediction market that afternoon.
However, the CFTC quickly filed an emergency motion with the appeals court, requesting a halt to trading in these markets while considering whether to appeal the full ruling. The appeals court granted the CFTC's request. As of 11:30 am Beijing time on September 13, two new Kalshi contracts on which party will win control of the House and Senate had been suspended on the company's website.
In its filing, the CFTC emphasized that allowing the contracts to continue trading might harm the public interest. Kalshi countered that Judge Cobb's ruling clearly stated that elections are neither "gambling" nor "illegal activities," and therefore the CFTC has no authority to block such contracts. The appeals court has asked Kalshi to submit its response by Friday evening, September 13, with the CFTC allowed to file a reply by Saturday evening, September 14.
