The U.S. Capitol building is seen bellow a stormy sky on July 22, 2024 in Washington, DC.
Samuel Corum | Getty Images
A federal appeals court on Wednesday refused to block a lower-court ruling allowing Americans to bet on the outcome of the 2024 congressional elections.
The appeals court decision rejected an effort by the federal Commodity Futures Trading Commission to prohibit the commodities exchange KalshiEx from offering “Congressional Control Contracts” while the CFTC appealed the lower-court’s ruling giving the green light for such bets.
The CFTC “has failed to at this time to demonstrate that it or the public will be irreparably injured” without a stay on the contracts being offered during the appeal, wrote Judge Patricia Millett of the U.S. Appeals Court for the District of Columbia Circuit.
The CFTC had barred KalshiEx from listing those contracts on the exchange, which the commission regulates, on the ground that they would violate the laws of many states that ban gambling on elections.
But a judge in U.S. District Court in Washington, D.C., ruled last month that the CFTC had erred in finding that KalshiEx’s congressional contracts involved gaming or gambling.
The commission then asked the federal appeals court for the District of Columbia Circuit to stay the effect of the judge’s ruling while it appealed that decision.
CNBC has requested comment from the CFTC and KalshiEx.
This illustration photo shows money and gambling dice in front of a screen showing political market odds, in Los Angeles on November 1, 2023.
Chris Delmas | Afp | Getty Images
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