- The CFTC might be preparing to appeal its loss against Kashi.
- The regulator has filed an “emergency motion” seeking a special court order.
- If granted, the motion would block Kalshi’s election bets for 14 days.
The U.S. Commodity Futures Trading Commission (CFTC) has quickly filed an “emergency motion” seeking a temporary stay of a recent court ruling in favor of the predictions market Kalshi.
The development came a few hours after Judge Jia Cobb of the US District Court for the District of Columbia sided with Kalshi in a long-running legal battle with the regulator. This decision paved the way for the platform to offer derivatives for wagering on the November U.S. presidential election.
CFTC Seeks a “Temporary Stay” Order
In a court document filed recently, the CFTC sought an “emergency stay” of Judge Cobb’s September 6 order, citing “serious legal questions at stake.” The CFTC also stated that it needed the benefit of the court’s reasoning to lodge a proper motion for a stay pending appeal.
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“Without the benefit of the Court’s reasoning, the CFTC is unable to make an informed decision whether to appeal, nor is it able to fully brief a motion for stay pending any forthcoming appeal. The CFTC, therefore, respectfully requests that the Court stay the vacatur of the CFTC’s September 22, 2023 order until two weeks (14 days) after the Court issues its reasoned opinion,” the filing read.
While the Friday ruling overturned the regulator’s order prohibiting Kalshi from offering contracts betting on which political party would attain majority seats in both houses of Congress, Judge Cobb didn’t give her rationale or opinion to back the decision.
The much-awaited opinion, which the Judge didn’t reveal when it would be published, seemed to be a serious point of contention for keen observers of the case.
Noting that it was a “huge win” for Kalshi, Variant Fund chief legal officer Jake Chervinsky stated that he would want to see the opinion before “dancing on the grave of the administrative state.”
Meanwhile, the CFTC recently proposed a regulation that, if passed, would ban all event contracts on decentralized prediction markets.
Read why the Winklevoss twins want the CFTC to withdraw its proposed rule on event contracts:
Winklevoss Twins Urge CFTC to Withdraw Proposed Rule on Event Contracts
Read about the top crypto arrests that rocked the digital asset industry:
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