Federal Court Halts Election Betting Amid Manipulation Concerns

The CFTC warns that allowing bets on U.S. elections could harm public confidence and lead to market manipulation.

A federal appeals court has temporarily stopped Kalshi from accepting bets on the upcoming congressional elections.
The Commodity Futures Trading Commission (CFTC) argues that election betting poses risks of misinformation and market manipulation.
Examples of past manipulation include false polls and large bets to sway perceived election outcomes.
Kalshi seeks federal regulation for election bets, arguing that oversight would prevent unregulated and potentially harmful trading.
Critics worry that election betting could damage the integrity of elections, especially during a time of already low public trust.