{"id":2042935,"date":"2023-09-24T04:32:01","date_gmt":"2023-09-24T08:32:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-regulators-reject-derivative-exchanges-plans-to-offer-bets-on-congressional-elections\/"},"modified":"2023-09-24T04:37:29","modified_gmt":"2023-09-24T08:37:29","slug":"us-regulators-reject-derivative-exchanges-plans-to-offer-bets-on-congressional-elections","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-regulators-reject-derivative-exchanges-plans-to-offer-bets-on-congressional-elections\/","title":{"rendered":"US regulators deny derivative exchange&#8217;s bid to offer wagers on congressional elections."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-regulators-reject-derivative-exchanges-plans-to-offer-bets-on-congressional-elections%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2042935&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>US Regulators Reject Kalshi&#8217;s Bid to Offer Bets\u2062 on Congressional Elections<\/h2>\n<p>The Commodity Futures Trading Commission (CFTC) has denied prediction market\u200d Kalshi&#8217;s \u200crequest to allow\u2064 bets \u200bon America&#8217;s congressional elections. In a 23-page\u2063 order, the CFTC stated that Kalshi&#8217;s proposed\u2062 contracts for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-regulators-reject-derivative-exchanges-plans-to-offer-bets-on-congressional-elections\/\" title=\"US regulators deny derivative exchange's bid to offer wagers on congressional elections.\">congressional control political events constitute prohibited gaming\u200b activity<\/a>.<\/p>\n<p>Kalshi, overseen by the CFTC, enables traders to bet on various\u2064 outcomes, ranging from inflation rates to government shutdowns and even the emergence \u2062of new\u200b COVID-19 \u200bstrains.<\/p>\n<h3>Related Stories<\/h3>\n<ul>\n<li><a href=\"http:\/\/www.theepochtimes.com\/us\/american-tech-ceos-converge-in-senate-event-calling-for-ai-regulation-5491621?ea_src=author_manual&#038;ea_med=related_stories\"><strong>American Tech CEOs Converge in Senate \u200dEvent Calling for AI Regulation<\/strong><\/a>  -\u200c 9\/14\/2023<\/li>\n<li><a href=\"http:\/\/www.theepochtimes.com\/us\/ramaswamy-unveils-plan-to-cut-75-percent-of-federal-jobs-rescind-most-regulations-5491173?ea_src=author_manual&#038;ea_med=related_stories\"><strong>Ramaswamy\u2064 Unveils Plan to Cut 75 Percent of Federal Jobs, Rescind Most Regulations<\/strong><\/a>  &#8211; 9\/13\/2023<\/li>\n<\/ul>\n<p>In June, \u2062Kalshi\u200d proposed cash-settled, \u200dbinary \u2062contracts for congressional elections, allowing \u2062market players to bet up to $100 million on which\u2064 political party would gain control of Capitol Hill.<\/p>\n<p>However, the CFTC determined \u2064that these contracts \u2063violated state laws\u2062 and were contrary to the public \u2062interest.\u2063 The Commodity Exchange Act\u200d lists gaming and activities that\u2063 violate state or federal laws as commodities\u200d for which\u200c derivatives may be against the public interest.<\/p>\n<p>CFTC\u2064 Chairman Rostin\u2064 Benham stated that betting on elections, as \u200cproposed by Kalshi, falls under the\u200c definition of gaming\u200d and is prohibited in many states.<\/p>\n<p>The CFTC&#8217;s decision means that Kalshi&#8217;s proposed election wager contracts are\u200c prohibited from being \u200dlisted\u200c or traded on its platform.<\/p>\n<p>CEO \u2063of\u200d Kalshi, Tarek Mansour, expressed disagreement with the decision \u2064and stated that the\u2064 company is evaluating its options. He \u2064compared the skepticism faced by Kalshi to other now-common financial\u2064 products\u2062 such as insurance and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/josh-hawley-announces-bill-banning-insider-trading-in-congress\/\" title=\"Josh Hawley Announces Bill Banning Insider Trading In Congress\">exchange-traded funds<\/a>.<\/p>\n<p>While one Republican commissioner abstained from\u200b the vote, the CFTC&#8217;s decision was \u2062reached in a 3-1 vote,\u2064 with all three Democratic commissioners voting against approval.<\/p>\n<p>Dennis Kelleher, \u200bCEO \u200cof Better Markets, praised the CFTC&#8217;s decision, stating that\u2062 Kalshi&#8217;s proposal \u2064violated\u2063 provisions of the Commodities Exchange\u200b Act and could lead\u2062 to \u2064election\u2064 interference and illegal \u2063conduct.<\/p>\n<p>Overall,\u200c the CFTC&#8217;s rejection of Kalshi&#8217;s bid\u2064 to offer bets on \u2062congressional elections aims to prevent potential\u200d manipulation and maintain\u200d the integrity\u2064 of the political system.<\/p>\n<p> <\/p>\n<h2> What are the \u2064potential benefits of prediction markets,\u2062 as\u200d acknowledged by \u200dthe CFTC, and how do\u200d they improve the efficiency of markets?<\/h2>\n<p><span> <\/p>\n<li><a href=\"http:\/\/www.theepochtimes.com\/us\/supreme-court-may-change-economic-analysis-of-public-health-measures-5541640?ea_src=author_manual&#038;ea_med=related_stories\"><strong>Supreme Court May Change Economic Analysis \u200bof \u2063Public Health\u2063 Measures<\/strong><\/a>  &#8211; 9\/21\/2023<\/li>\n<\/ul>\n<p>The \u200bdecision to reject Kalshi&#8217;s \u2062request comes \u200bas a blow to the platform, which had aimed to become the first provider of prediction markets for political events in the United States. The company&#8217;s\u2064 goal\u2062 was to \u2062allow traders to\u2064 bet on the control of Congress, providing an alternative \u200bway for individuals to participate in the political process and potentially profit from their predictions.<\/p>\n<p>Prediction markets have been gaining traction in recent \u2062years, \u200cwith platforms like PredictIt and Augur allowing users to bet on various outcomes, such as election results and the likelihood \u2064of certain events occurring. These markets \u200care considered valuable tools for assessing public sentiment and aggregating information, as \u200bthey allow individuals to back their beliefs with their own money.<\/p>\n<p>However, the CFTC&#8217;s rejection of\u200b Kalshi&#8217;s request highlights the regulatory challenges faced by prediction market operators. The agency argued that allowing bets on political events would raise concerns about <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elizabeth-warren-calls-on-sec-to-investigate-potential-market-manipulation-cautions-against-internet-trading-schemes-a-flash-mob-with-money\/\" title=\"Elizabeth Warren Calls On SEC To Investigate Potential \u2018Market Manipulation,\u2019 Cautions Against \u2018Internet Trading Schemes,\u2019 \u2018A Flash Mob With Money\u2019\">potential market manipulation<\/a>, as well as ethical considerations regarding the monetization of political outcomes. They emphasized that such markets could\u2062 undermine the integrity of the political process by incentivizing participants to put\u200d their financial interests above the collective good.<\/p>\n<p>In their order, the CFTC acknowledged the \u200cpotential benefits \u200cof prediction markets, stating that they &#8220;can lead to more\u2063 accurate \u200dforecasts and improve the overall efficiency of markets.&#8221; However, they emphasized that the prohibition on gaming activities under the Commodity Exchange Act should not be \u2062disregarded, as it serves to\u2063 protect public\u2064 interests\u2062 and maintain the integrity of the \u200dfinancial system.<\/p>\n<p>While the rejection of Kalshi&#8217;s\u200b request is a setback \u200dfor the\u200d company, \u200cit is not necessarily the end for prediction markets on political \u2062events in\u2064 the United States. The CFTC&#8217;s decision\u2062 leaves open the possibility for future \u2063regulatory frameworks that could allow \u2062for such markets under specific conditions and safeguards.<\/p>\n<p>In the meantime, prediction market enthusiasts will have to rely\u200d on platforms \u200dlike PredictIt to engage in political betting. As the demand for\u200b these \u200cmarkets continues to grow, it will be \u2064interesting to see how regulators \u200dstrike a balance between innovation and\u200b public protection in this evolving industry.<\/p>\n<p>Overall, the CFTC&#8217;s rejection of Kalshi&#8217;s \u2062bid to offer bets on congressional elections underscores the challenges\u2064 faced by prediction market operators in navigating the complex regulatory landscape. While the potential benefits\u2064 of prediction markets are recognized, concerns\u200b over market manipulation and ethical \u2063considerations have led regulators to maintain a cautious \u2064approach. As the industry continues to develop, it is crucial\u200c for regulators and market operators\u200b to engage in dialogue and explore \u2062potential frameworks that strike a balance between innovation and protection.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>bet on the outcome of various events. However, the CFTC has rejected their proposal to offer bets on congressional elections, stating that it violates regulations against gambling. Kalshi, a prediction market platform, will not be able to proceed with their plans for congressional control political event contracts.<\/p>\n","protected":false},"author":118,"featured_media":2042936,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2042935","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2042935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2042935"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2042935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2042936"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2042935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2042935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2042935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}