Kalshi launched its election markets after U.S. District Judge Jia Cobb ruled that the CFTC had exceeded its authority.
The United States Commodity Futures Trading Commission (CFTC) successfully obtained an administrative stay on the underlying order in its case against Kalshi, forcing the prediction market to halt its trading in the United States election less than 24 hours after it went live.
This new phenomenon has emerged due to the deep interest that crypto natives continue to show in the US presidential elections, which analysts believe could have a substantial impact on Bitcoin and other cryptocurrencies.
CFTC Secures Court Win In Case Against Kalshi
Following the decision of the court of appeals to administratively delay the order of the district court until such time as they are able to adequately evaluate the Commission’s application for a stay pending appeal, the Commodity Futures Trading Commission (CFTC) was able to have its case against Kalshi successfully resolved in court.
When the regulator banned the prediction market from listing election bets, United States District Judge Jia Cobb had already ruled in favor of Kalshi, stating that the regulator had acted beyond its authority.
After the verdict, the Commodity Futures Trading Commission (CFTC) requested that Judge Cobb delay Kalshi from launching its election trading platform until she issued her full opinion.
This would assist the Commission in determining whether or not to appeal the ruling. Nevertheless, the request was denied by the district judge, which prompted the regulator to submit an urgent move to the Court of Appeals in order to obtain a stay of the ruling.
The regulator took this action because Kalshi had already started operating its election markets. The Court of Appeal’s decision to grant an administrative stay of Judge Cobb’s injunction ultimately led Kalshi to halt its trading market less than 24 hours after its public introduction.
The court of appeals pointed out that its decision did not address the merits of the motion. Moreover, the court of appeals mandated Kalshi to submit a response to the emergency request, which would aid the court in deciding whether to stay the order until the final resolution of the appeal.
A letter that was sent to the court by Kalshi, in which he expressed his opposition to the emergency motion, made it abundantly apparent that the platform was ready to provide a prompt response in the event that the administrative stay was granted.
We took this action to guarantee the court’s decision by September 16 or as soon as possible. The Commodity Futures Trading Commission (CFTC) brought action against Kalshi because prediction markets gained popularity in the cryptocurrency world ahead of the US elections in November.
Residents of the cryptocurrency industry utilize the sentiments of bettors to predict the most likely outcome of the election between Donald Trump and Kamala Harris. In the run-up to the elections, cryptocurrency has also garnered significant attention.
President Trump has made it clear that he is in favor of Bitcoin, while Senator Harris has not disclosed her position on the matter. In line with this, analysts have continued to make Bitcoin price forecasts based on the eventual candidate for the United States presidency.
An analyst from Bernstein estimated that Bitcoin would reach $90,000 if Trump were to win the election, while the price of the main cryptocurrency might fall to as low as $30,000 if Harris were to win.
According to the most recent data from Polymarket, Harris has a fifty percent chance of becoming the next president, while Trump has a forty-nine percent chance of doing so.
