The US Commodity Futures Trading Commission (CFTC) has sought court permission to withdraw its appeal against prediction market platform Kalshi, potentially ending its effort to bar Kalshi from offering political event contracts. In a May 5 filing, CFTC lawyers submitted an unopposed motion for voluntary dismissal in the US Court of Appeals for the DC Circuit, indicating agreement with Kalshi. If the court approves, Kalshi will be able to list contracts, such as bets on election outcomes, without regulatory contest.
This development follows Kalshi’s lower court victory after it sued the CFTC in 2023, challenging the regulator’s initial order to halt political event contract offerings. CFTC's move reflects a policy shift after a change in administration, with Caroline Pham serving as acting chair under President Donald Trump, and the agency’s stance now echoing Kalshi's claim that election markets are 'here to stay.'
Kalshi, which became popular among crypto users partly for its election-focused bets, has previously accepted Bitcoin deposits to attract crypto-native users.