Fight Over Political Event Futures Contracts Remains Contentious

October 5, 2023

On September 22, the U.S. Commodity Futures Trading Commission (the “CFTC” or the “Commission”) issued an order disapproving the listing and trading of congressional control event contracts by KalshiEX, LLC (the “Kalshi Order”), a designated contract market (“DCM”). The disapproval, which follows the Commission’s withdrawal of its no-action position regarding PredictIt—an online prediction market that allows participants to trade swaps and futures contracts on political election outcomes—represents another blow to event contracts based upon political events. (We previously covered the Commission’s PredictIt no-action letter withdrawal (the “Withdrawal”) and review of Kalshi’s congressional control event contracts (the “Kalshi Contracts”) here.) However, the procedural circumstances of both actions mean that the fight is far from over.

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