The U.S. Capitol Building in Washington, D.C., under stormy skies on July 22, 2024.
Samuel Kunlun | Getty Images
a federation Court of Appeal Washington, D.C., on Wednesday cleared the way for Americans to bet on the outcome of the 2024 congressional elections.
Court of Appeal in Decide rejected an effort Commodity Futures Trading Commission prohibit commodity exchange karsh exchange The company is no longer offering Congressional Control Contracts as federal agencies appeal a lower court ruling that gave the green light to such bets.
CFTC Judge Patricia Millett wrote that the CFTC “has currently failed to demonstrate that it or the public would be irreparably harmed if the contracts offered during the appeal are not suspended.” harm”. U.S. Court of Appeals for the District of Columbia Circuit.
Millett, a member of the three-judge panel hearing the case, said the agency could re-file its request to block the contract pending the outcome of the appeal “if corroborating evidence emerges.”
There were no objections to the 15-page decision on Wednesday, which favored KalshiEx, which offers clients contracts that can hedge the risk of certain events.
The CFTC declined to comment on the ruling, but noted that “this is our request for an emergency stay, not an appeal itself.”
CNBC has asked KalshiEx for comment.
The CFTC banned KalshiEx from listing its congressional contracts on exchanges regulated by the commission, arguing that the contracts violated laws prohibiting election gambling in many states.
This illustration photo shows money and gambling dice in front of a screen showing political market odds on November 1, 2023 in Los Angeles.
Chris Delmas | AFP | Getty Images
But U.S. District Judge Jacob Jacobs of the U.S. District Court in Washington, D.C., ruled last month that regulators erred in determining that KalshiEx’s congressional contract involved betting or gambling.
Cobb’s ruling only took effect for about eight hours before the District of Columbia Court of Appeals stayed its enforcement at the CFTC’s request.
But KalshiEx accepted an unknown number of congressional election bets during this period. The bets offered include outcomes in which Republicans win control of the Senate and Democrats win control of the House of Representatives.
Wednesday’s ruling lifts the administrative suspension.
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