Kalshi has labeled the Commodity Futures Trading Commission’s (CFTC) 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. However, it has been involved in a legal dispute with the regulatory body over the right to offer contracts based on U.S. election outcomes.
CFTC’s motion for emergency stay triggers Kalshi
The company recently received a favorable court ruling from the CFTC’s previous ban on such contracts. However, the CFTC’s motion for an emergency stay has reignited the controversy.
In its response to the CFTC’s motion, Kalshi emphasizes the time-sensitive nature of the issue. Kalshi mentioned that the 2024 U.S. elections are less than 60 days away.
The company argues that any further delay in listing the contracts could cause harm to the company. Kalshi stated that the goal was to get 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 argues no legitimate basis for two plus weeks of delay
Kalshi’s legal team argues that the regulatory body has no legitimate basis for two more weeks of delay before they even decide whether they want to appeal.
The company argues that Kalshi and the public deserve access to the contracts that were blocked by the CFTC for a long time. Kalshi also mentioned that the CFTC hasn’t bothered to explain the firm’s supposed injury. They also added that the agency hasn’t provided any reason to state that Kalshi would prove to be an exceptional threat in the next two weeks.
“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,” Kalshi said.
Kalshi highlighted that the CFTC is now looking to inflict more harm. The company also stressed that with elections less than 60 days away, every day that passes could cause serious injury to Kalshi.
