A federal appeals court rejected the Commodity Futures Trading Commission’s (CFTC) request for an emergency stay to halt the derivatives exchange Kalshi from offering its election-related event futures contracts.
Per iGB, on Oct. 2, the U.S. Court of Appeals for the District of Columbia ruled in favor of Kalshi, saying that the CFTC failed to show how the contracts would lead to public harm. In oral arguments last month, the commission argued that it would become the “election cop” if the contracts were allowed. But the three-judge panel from the appeals court disagreed.
Judge Patricia Millett wrote that the CFTC ” failed to demonstrate that it or the public will suffer irreparable injury absent a stay pending appeal.” As such, the stay that was granted Sept. 13 “is hereby dissolved.”
Millet did concede that the case was “close and difficult.” But the CFTC’s failure to demonstrate public harm “is fatal to the Commission’s stay request” as that is a “necessary prerequisite.”
