TechFlow news: Rostin Behnam, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), said the CFTC will continue to argue that Kalshi's election-related contracts are illegal and warned of potential negative implications.
Last week, a court ruled that the CFTC had overstepped its authority in blocking Kalshi from listing election-related contracts. The CFTC has since filed an appeal. Behnam stated that allowing the CFTC to regulate election contracts could draw the agency into investigations of election-related fraud or manipulation—activities beyond the CFTC’s statutory mandate.
He also noted that the CFTC is closely monitoring overseas prediction markets serving U.S. customers and will take enforcement actions if illegal activities are found.
Previously, the prediction market Polymarket reached a settlement with the CFTC for operating without registration, agreeing to exit the U.S. market.
