CFTC Withdraws Appeal Against Kalshi’s Prediction Platform

The CFTC withdrew its appeal against Kalshi, a regulated prediction market platform, on May 6, 2025, impacting the landscape of U.S. event-based trading.

This decision could set a precedent for federally regulated prediction markets while affirming the legality of such platforms.

Kalshi’s CFTC Withdrawal: Shifting U.S. Prediction Markets

The CFTC’s decision to withdraw its appeal marks a pivotal shift for Kalshi. The platform is among the first federally regulated prediction markets in the U.S., focusing on event-based trading.

Kalshi and the CFTC previously clashed over the legality of election outcome contracts. Regulatory approval for such markets proves contentious, with significant legal implications for future operations.

CFTC Decision Alters Regulatory Landscape for Prediction Markets

The decision affects the regulatory landscape for U.S. prediction markets. Despite this case win, there is no direct impact on major cryptocurrencies like ETH or BTC.

Politically, voluntary dismissal by CFTC could influence how future event-based contracts are regulated. The legal community has pointed out possible long-term impacts on public policy.

Kalshi Win Highlights Shift in CFTC Enforcement Approach

Previous cases often ended in CFTC enforcement, showing a regulatory shift. Kalshi’s court win is a unique occurrence, contrasting past actions against platforms like Polymarket.

The ruling could lead to wider acceptance of such markets, influencing them long-term. Industry experts suggest this could invite further debate on regulation and ethics in event-based trading.

“The CFTC has just voluntarily surrendered its fight to overturn a dangerous lower court decision that allows gambling on the outcome of congressional elections. That decision was bad law and even worse policy.” – Stephen Hall, Legal Director, Better Markets

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