it would be funny if CF was able to bring back a real movie futures market because of Loper Bright
Posted by
mr mooch (aka pickmix)
Sep 9 '24, 11:39
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CFTC Loses Court Battle Over Election Betting Contracts
By Jessica Corso · Listen to article
Law360 (September 6, 2024, 6:20 PM EDT) -- A Washington, D.C., federal judge ruled against the U.S. Commodity Futures Trading Commission on Friday in a case that challenged an agency ban on the use of the derivatives markets to place bets on the outcome of U.S. elections, granting victory to trading platform KalshiEx LLC.
U.S. District Judge Jia Cobb lifted the CFTC's order prohibiting Kalshi from offering users of its platform the opportunity to place bets on the outcome of upcoming U.S. congressional elections, saying in an order issued late Friday that she would explain her reasoning for granting summary judgment to the company in a "forthcoming memorandum opinion."
That opinion wasn't immediately available.
Kalshi sued last November shortly after being notified by the CFTC that its proposed contracts were prohibited by the Commodity Exchange Act as unlawful gambling.
The platform told Judge Cobb in July that the U.S. Supreme Court's recent decision, in Loper Bright Enterprises v. Raimondo , to strike down so-called Chevron deference was the end of the road for the CFTC's efforts to expand the definition of "gambling" under the CEA.
The CFTC has argued that it not only has the authority to ban election contracts but that it is in the public interest to do so, with Chair Rostin Behnam saying the offering of such contracts threatens to force the agency into the role of an "election cop."
Since issuing the order against Kalshi, the CFTC has put forth a proposal to ban all future offerings of election-based event contracts. It is also tied up in litigation in Texas with another platform, PredictIt, after the commission moved to shut down the platform in 2022.
Neither Kalshi nor the CFTC immediately responded to a request for comment late on Friday.
KalshiEx LLC is represented by Yaakov M. Roth, John Henry Thompson, Amanda K. Rice and Samuel V. Lioi of Jones Day and and Joshua Sterling of Milbank LLP.
The CFTC is represented in-house by Raagnee Beri, Robert A. Schwartz, Anne W. Stukes, Margaret P. Aisenbrey and Conor B. Daly.
The case is KalshiEx LLC v. Commodity Futures Trading Commission, case number 1:23-cv-03257, in the U.S. District Court for the District of Columbia.
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