CFTC Drops Appeal in Kalshi Election Betting Case, Clearing Path for Prediction Markets

The U.S. Commodity Futures Trading Commission (CFTC) has abandoned its appeal against Kalshi, a New York-based prediction market platform, according to a court filing. This decision paves the way for Kalshi to offer political event contracts without regulatory interference.

Under the proposed dismissal terms, both parties will bear their own legal costs, and Kalshi has agreed not to pursue litigation against the CFTC. "Today is historic," said Kalshi CEO Tarek Mansour. "This result proves that doing things the right way pays off—Kalshi’s approach has secured the future of prediction markets in America."

The dispute began in 2023 when the CFTC initially denied Kalshi’s proposal. The resolution marks a significant milestone for prediction markets, reinforcing their legitimacy in the U.S. financial landscape.