카지노사이트

Political betting contracts blocked

Lea Hogg last year
Political betting contracts blocked

The Commodity Futures Trading Commission (CFTC) has rejected an application by KalshiEX LLC to offer “event contracts” related to betting on the outcomes of the 2024 federal elections. These contracts would have allowed investors to bet on which political party would control the House and Senate.

Controversial decision by CFTC

This decision has stirred controversy in the financial and political realms. KalshiEX LLC, a futures exchange, is therefore prohibited from allowing investors to place bets on which political party would control the House and Senate following the elections.

Chairman raises concerns

CFTC Chair Rostin Behnam, (pictured above), in a statement released today, highlighted his concerns regarding this specific type of financial contract. He pointed out that federal law obliges the CFTC to thoroughly evaluate such proposals to determine whether they violate any state laws and whether they serve the public interest. According to Behnam, the event contracts proposed by KalshiEX failed to meet both criteria.

Behnam expressed his apprehensions, stating that approving these political event contracts would essentially transform the CFTC into an “election cop.” This role would require the agency to actively monitor elections, candidates, and the various participants involved in political activities, both in traditional media and the digital space. The primary goal would be to prevent manipulation and the spread of false information within the political system—a responsibility that the CFTC currently lacks the mandate to assume.

Precedents and dissent

KalshiEX is not the first company to venture into regulated event contracts for U.S. investors. PredictIt, a platform based in New Zealand, previously offered such contracts under a “no action” letter granted in 2014 to Victoria University of Wellington. This arrangement aimed to facilitate research into the effectiveness of prediction markets in forecasting events.

However, the CFTC took a significant step last year by revoking the “no action” letter, resulting in PredictIt discontinuing its political contracts in the U.S. in February. Additionally, in January of the previous year, the agency settled charges with New York-based Polymarket for offering event contracts without registering with the CFTC. The settlement involved a hefty $1.4 million fine. Although Polymarket ceased offering contracts to U.S. customers, it continued its operations in other global jurisdictions.

CFTC commissioner Summer Mersinger, a Republican, expressed dissent regarding the decision on KalshiEX. Mersinger argued that the agency might be exceeding the authority granted to it by Congress. She suggested that a formal rulemaking process, involving public input, should be initiated to determine the extent to which political event contracts may violate existing laws.

This decision by the CFTC has sparked a debate on the regulatory boundaries surrounding financial contracts linked to political events, raising questions about the agency’s role in overseeing such markets and its implications for the broader political landscape.

Related topics:

A national controversy – no end in sight for Okada Manila

Recommended for you
David Gravel
2 months ago
카지노사이트 카지노사이트 카지노사이트 카지노사이트 바카라사이트 바카라사이트 바카라사이트 바카라사이트 온라인바카라 바카라사이트