CFTC scrutinizing Kalshi congressional control contracts to ensure fairness and compliance
The Commodity Futures Trading Commission (CFTC) has announced its review of contracts offered by KalshiEX, a prediction market provider that also supports crypto bets. The regulator says the move aims to ensure the contracts’ fairness and regulatory compliance.
CFTC examines Kalshi’s political prediction contracts
The CFTC, the regulatory authority overseeing various trading contracts, has turned its attention to Kalshi and its offering in the market. Kalshi submitted contracts to allow participants to speculate on which political party would achieve control over distinct sections of the U.S. Congress.
Individuals can place bets when there is a question of whether a political party will have control over a particular group of Congress members or not. As described by Kalahi, these contracts are settled with monetary transactions rather than physical assets.
However, the CFTC has launched a comprehensive review of the offering to ensure the fairness and compliance of these contracts. The agency seeks public input regarding these contracts to provide a well-rounded assessment.
The Commission has posed specific questions about the agreements. It provides a 30-day window for individuals to share their thoughts and opinions. The CFTC intends to make an informed decision regarding the acceptability of the contracts by getting the necessary feedback from the public.
Earlier this month, a draft proposal was introduced by the House Republicans, aiming to clarify the roles of regulatory bodies.
As described in the proposal, the CFTC would regulate crypto commodities, while the SEC would handle digital securities. This move is geared towards having a comprehensive regulatory framework for cryptocurrency by encouraging a favorable environment and protecting market participants.
Recently, the CFTC has taken legal action against William Koo Ichioka, accused of defrauding approximately 100 users, including crypto asset holders. Ichioka allegedly failed to fulfill his promises, misappropriating over $21 million from non-family investors and about $40 million from his family members.