The U.S. derivatives regulator plans a June 26 meeting to discuss initiating a new review of Kalshi’s event contracts for potential approval.
On June 26, the Commodity Futures Trading Commission (CFTC) will determine whether to initiate a formal 90-day review of KalshiEX’s contract, which enables users to wager on the political party that will gain control of the U.S. Congress.
As a designated contract market, Kalshi is overseen by the CFTC, which has the authority to approve or reject contracts through the 90-day review process. Although Kalshi had initially submitted the contract for CFTC review last year, they recently withdrew the original request. However, the exchange is now resubmitting the contract to the agency for consideration.
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These specific cash-settled, binary contracts enable users to make predictions and place bets on the majority control of each of the two chambers of Congress.
Prediction markets, as described by Kalshi on its website, involve the buying and selling of contracts based on the likelihood of events occurring. These markets have faced a turbulent recent history with the CFTC. Several companies, including Polymarket and PredictIt, have been ordered to halt their operations in the U.S. PredictIt has been engaged in a legal battle with the CFTC since last year.
Also Read:Â Ex-CFTC Chairman: SEC Must Establish New Framework for Investor Protection
Important:Â This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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