U.S. commodities regulator wants to withdraw appeal on Kalshi election betting proposals – CNBC

Kalshi App Launch and CFTC Decision

The Kalshi app made its debut on smartphones in New York on Monday, February 10, 2025.

The Commodity Futures Trading Commission (CFTC) decided on Monday to withdraw its appeal against a federal judge’s ruling that permitted the exchange of bets on the outcomes of U.S. political elections through Kalshi.

This filing in the District of Columbia Court of Appeals proposed a voluntary dismissal based on an agreement with Kalshi. Both parties will cover their own legal costs, and all claims related to the lawsuit will be waived.

CNBC reached out for comments regarding the motion from both the CFTC and Kalshi.

Interestingly, in January, Kalshi appointed Donald Trump Jr., the eldest son of former President Donald Trump, as its strategic advisor.

For several months, the CFTC had been trying to appeal a ruling made by U.S. District Judge Jia Cobb in Washington, D.C. Cobb’s ruling favored Kalshi, stating that Congress did not give the CFTC authority to conduct public interest reviews prohibiting agents from offering event contracts tied to elections.

The Court of Appeals initially froze Cobb’s order about eight hours after it was issued. However, weeks later, it lifted the freeze, allowing Kalshi to accept bets on election outcomes while the CFTC continued its attempts to overturn Cobb’s ruling.

Following this recent decision, the financial reform advocacy group Better Markets criticized the CFTC’s move to withdraw its appeal, calling it a “severe betrayal of the public interest.” According to Stephen Hall, Better Markets’ legal director, this withdrawal represents a danger to the integrity of federal elections, opening the door to market manipulation and potential investor losses.