CFTC Withdraws Appeal, Allows Kalshi to Offer Political Event Contracts

The U.S. Commodity Futures Trading Commission (CFTC) has dropped its appeal against Kalshi, allowing the New York-based prediction market to offer political event contracts.

Both parties will cover their own legal costs.
Kalshi waives the right to sue the CFTC regarding the litigation.
Kalshi's CEO stated this decision secures the future of prediction markets in the U.S.

The dispute began in 2023 when the CFTC denied Kalshi’s request to allow users to bet on congressional control, claiming it was unlawful. Kalshi then sued the CFTC, asserting overreach by the agency.

The court ruled in favor of Kalshi in September 2024, permitting the listing of political contracts.
Following the ruling, the CFTC sought a stay but was denied.
After oral arguments in January, changes occurred within the CFTC, including a new acting Chair.

The agency has since modified its regulatory approach towards crypto, focusing on simplification and narrowing enforcement activities.