US Regulators Reject Derivative Exchange’s Plans to Offer Bets on Congressional Elections

The CFTC has denied a proposal by derivative exchange Kalshi to offer contracts allowing people to bet on the outcome of congressional elections.

Signage outside of the Commodity Futures Trading Commission in Washington on Aug. 30, 2020. Andrew Kelly/Reuters

U.S. financial regulators have rejected a bid by prediction market Kalshi to offer bets on U.S. congressional elections.

The Commodity Futures Trading Commission (CFTC) on Sept. 22 issued a 23-page order (pdf) disapproving Kalshi’s congressional control political event contracts on the premise that they amount to prohibited gambling activity.