The Commodity Futures Trading Commission filed a motion for voluntary dismissal of its appeal against Kalshi in the US Court of Appeals for the DC Circuit. Kalshi agreed to waive claims arising from the litigation and related proceedings. The motion follows an earlier appeals court ruling in Kalshi’s favour on its election contracts.
Dismissing the appeal would end the CFTC’s court challenge to Kalshi’s election contracts.
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It was reported that Wisconsin’s Elections Commission warned residents that trading election prediction contracts could expose them to felony charges if they vote in the same election. The warning concerns products offered by platforms including Kalshi.
Prediction-market platforms were trading contracts on control of the US House and Senate during the 3 November midterm elections, according to the report. It cited Kalshi and Polymarket prices at 10:32 a.m. ET and said no results had been reported by then. The report also described third-quarter figures from Robinhood, including $173 million in event-contract revenue and 16.4 billion contracts traded.
The CFTC voluntarily withdrew its appeal of a federal court ruling that allowed Kalshi to offer contracts on the US presidential election. The agency gave no clear reason for dropping the challenge; Kalshi continues to face regulatory scrutiny in several states.
Maryland State Elections Administrator Jared DeMarinis warned residents that trading on election outcomes through prediction markets could constitute illegal wagering and lead to prosecution. He said the state was reviewing whether to take action against the platforms; the CFTC, which claims federal authority over them, said it would defend its jurisdiction.
Kalshi announced enforcement action against California gubernatorial candidate Stephen Cloobeck for betting on his own victory. The report said Kalshi also took action against two other political candidates.