Rep. Ritchie Torres Urges CFTC to Regulate Election Markets After Court Ruling
U.S. Representative Ritchie Torres is pushing for increased regulation of election markets by the Commodity Futures Trading Commission (CFTC) following a recent legal setback for political prediction markets.
The call from the New York Democrat comes in response to a federal appeals court’s decision to halt Kalshi’s political prediction markets. This move followed a request from the CFTC for an emergency stay after losing a similar case in a lower court.
In a letter addressed to CFTC Chair Rostin Behnam, Torres emphasized the need for a structured regulatory approach to these markets to ensure consumer protection and innovation. He expressed concern over the existence of unregulated exchanges that have hosted election-related betting for years.
This appeal follows a ruling by Judge Jia M. Cobb of the U.S. District Court for the District of Columbia, who found that the CFTC exceeded its authority in blocking Kalshi’s proposal to offer election-related contracts. The CFTC subsequently appealed this decision, citing potential risks to election integrity.
Torres argued that continued legal battles and the growth of unregulated markets could undermine confidence in the electoral process. He urged the CFTC to focus on regulating these markets to ensure they operate within legal and secure frameworks.
CFTC Chair Behnam has previously voiced concerns about the rapid expansion of event markets since 2021, leading the commission to propose new rules that would ban political betting. The CFTC had earlier voted in May to restrict bets on political events as the November elections approach.
As of September 12, Kalshi has paused its election-related contracts pending the outcome of the ongoing legal proceedings. In contrast, other platforms like Polymarket continue to operate without regulation in the U.S.
The CFTC has yet to respond to Torres' recent appeal or the latest court ruling regarding Kalshi’s political prediction markets.
