Kalshi Counters CFTC's Attempt to Delay the Listing of Election-Related Contracts as “Meritless”

Kalshi is a CFTC-regulated exchange that allows users to trade on the outcomes of future events.

CFTC-regulated exchange Kalshi has slammed the Commodity Futures Trading Commission’s (CFTC) attempt to delay the listing of election-related contracts as “meritless.”

Kalshi, an exchange that enables users to trade on the outcomes of future events, has been locked in a legal dispute with the CFTC over its right to offer contracts based on U.S. election outcomes.

After a court ruled in favor of Kalshi over the CFTC’s earlier ban on such contracts, the regulator filed a motion for an emergency stay, reigniting the controversy.

In its response to the CFTC’s motion, Kalshi highlighted the time-sensitive nature of the matter, with the 2024 U.S. elections less than 60 days away.

“Any further delay in listing these contracts will cause Kalshi irreparable harm. The 2024 U.S. elections will occur in less than 60 days,” Kalshi stated, adding that it aims to secure a final judgment by September 6, 2024.

“That delay—which the agency would assuredly try to parlay into another, then another, until it is too late—would be devastating for Kalshi, which has staked its future on this litigation and these markets,” Kalshi said.

Kalshi's legal team argued that the regulator has no legitimate basis for two more weeks of delay before deciding whether to appeal.

According to the company, Kalshi and the public are entitled to immediate access to these contracts, which the CFTC has already unlawfully blocked for over a year.

“The CFTC has not bothered to explain the firm’s supposed injury or provide any reason to state that Kalshi would pose an exceptional threat in the next two weeks,” Kalshi added.

“This Court’s Order makes clear that the CFTC has already unlawfully banned Kalshi’s contracts for over a year since their June 2023 self-certification. The agency now seeks to inflict more,” Kalshi stated.

“With elections less than 60 days away, every day that passes without these markets open causes serious injury to Kalshi,” the company stressed.