CFTC rule move to help Kalshi fight courts draws Democrat fire
Democrats & investor advocates say the regulator is reaching back to a 2012 rule to help Kalshi fight court rulings in certain states.
The hit
The CFTC has interpreted a 2012 post-financial crisis rule in a move that could let Kalshi & other prediction market operators keep trading nationwide despite court orders in some states, according to Bloomberg Law. Democrats & investor advocates say the regulator is using the rule to help Kalshi fight court rulings restricting its sports markets.
Why it matters
The dispute is about who referees the industry: the CFTC or individual states. The CFTC’s interpretation seems intended to boost prediction market companies struggling to convince courts that the US watchdog, not states, should have sole authority over the industry.
The record
| Rule at issue | 2012 impartial access rule (Commodity Futures Trading Commission) |
|---|---|
| Announcement | Interpretation announced last week |
| Companies affected | Kalshi Inc. & other prediction market operators |
| Dispute | Active litigation in certain states |
What happens next
Watch for CFTC guidance detail & any state or court response challenging the agency’s reading of the 2012 rule.
Sources: CFTC’s Prediction Market Access Move Stokes Political Tension
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