Kalshi has relaunched its betting pools based on the results of the US election—the latest development in an intensified legal drama that wreaked havoc on the prediction market operator's trading strategy last month.
A federal appeals court on Wednesday lifted Calci's weeks-long ban on prediction markets based on the US election.
Kalshi started short-term forecasting markets based on September 12 US elections. However, the company closed those markets shortly thereafter, following orders from the Supreme Court of Appeal.
Kalshi operates similarly to some decentralized prediction markets that use blockchain, such as Polymarket, but uses traditional financial infrastructure instead.
In any case, the election in November confirmed the benefits for both traditional and blockchain-based betting platforms this year.
“US presidential election markets are legal. Officially. Finally,” Tarek Mansoor, CEO of Kalshi he said. Wednesday on Twitter (aka X) post. “Kalshi will win.”
The appeals court's ruling rejects a bid by regulators to stop betting based on selections on Kalshi pending a lower court ruling by prediction market operators that allowed Congress to green-light race-related provisions.
That means Kalshi's revival of poll-based markets is unlikely to be disrupted until at least November 5. This latest order is part of an ongoing case between the Commodity Futures Trading Commission and Kalshi.
The CFTC has fought to ban congressional-focused prediction markets for more than two years, saying the betting pools could undermine confidence in America's democratic process.
But the argument from federal regulators has left some lawyers unconvinced.
Last month, U.S. District Court for the District of Columbia Judge Gia Cobb granted Kalshi's plea, allowing the prediction market operator to continue his plan to offer Americans a way to bet on a way for a US political party to control the House of Representatives. and the Senate in 2025.
Edited by Sebastian Sinclair.
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