CFTC Overreach: Court Rejects Ban on Kalshiex Prediction Market
CryptoNewsTerminal Staff12 Sep, 2024
CFTC Overreach: Court Rejects Ban on Kalshiex Prediction Market
The Commodity Futures Trading Commission (CFTC) has overreached its authority in attempting to ban Kalshiex, according to the U.S. District Court for the Northern District of Illinois. The CFTC had argued that Kalshiex's political issue prediction markets fall under the category of "games of chance" and are therefore banned under the agency's jurisdiction. The court, however, disagreed, saying that "Kalshiex's prediction markets do not involve illegal gambling or other illegal activity." This ruling is a significant victory for Kalshiex and the broader prediction market industry. It also serves as a reminder that the CFTC's authority is not unlimited, and that courts will not hesitate to strike down overreaching actions by the agency.
