Court rejects CFTC bid in prediction market case

• A US judge has denied the CFTC's request to block prediction markets in Wisconsin.
• The ruling allows Kalshi to continue offering its event contracts during the legal dispute.
• The case could influence how prediction markets are regulated in the United States.

A US federal judge has rejected the Commodity Futures Trading Commission's (CFTC) request to stop Kalshi from offering prediction market contracts while their legal dispute continues.

The ruling allows Kalshi to keep listing event contracts as the court considers whether the CFTC acted within its authority.

The CFTC argued that some event contracts should not be available because they involve matters that may fall outside permitted derivatives markets.

Kalshi challenged the regulator's position, arguing that its contracts comply with federal law and existing CFTC rules.

The case is one of several legal disputes that could shape the future of prediction markets in the United States.

The final outcome may influence how regulators oversee event-based contracts offered by exchanges and trading platforms.