US election betting issue put ‘on hold’ following CFTC appeal
The group filed an appeal within hours of a decision to overturn a ban on election betting.
The Court of Appeals for the District of Columbia Circuit has put the issue of election betting on hold following a recent ruling in favor of Kalshi, the Associated Press reported.
The appeals court issued an order to “temporarily freezing the matter until it can consider and rule on the issue.”
Federal judge Jia Cobb recently ruled in favor of allowing Americans to bet on the outcome of the upcoming US election.
However, this is not the end of the discussion. The Commodity Futures Trading Commission (CFTC) appealed Cobb’s ruling within hours of the decision.
Prior to Judge Cobb’s ruling to allow election betting, the CFTC had ordered Kalshi not to offer derivatives that would allow players to wager on the election.
Lawmakers expressed concern for voters and noted that rebuilding trust should be prioritized over a focus on wages.
They also said that allowing election betting could potentially create mistrust in the election process and sent a letter to the CFTC that outlined their concerns.
The letter was signed by several government leaders, including Senators Jeff Merkley, Richard Blumenthal, Chris Van Hollen, Elizabeth Warren and Sheldon Whitehouse, along with (Representatives Eleanor Holmes Norton, Jamie Raskin and John Sarbanes.
The letter stated, “As we approach the 2024 election, voters already face a political system that allows the richest individuals and corporations to funnel dark money into campaigns without disclosure. The threat of violence and extremism is high, and the US remains a target for foreign actors who have sought to meddle in our elections.
“The last thing that voters heading to the polls need are bets waged on the outcome of that election. Voters need action, as proposed by the CFTC in this rule, to restore trust. Elections are not a for-profit enterprise. Without this rule, voters will wonder if their vote mattered, and the whether the outcome of the election was influenced by big money bets.”
The commission and Kalshi have not responded to the Associated Press’ request for comment.
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