CFTC Blocks Kalshi's Proposal for Betting on U.S. Congress Control

The Commodity Futures Trading Commission (CFTC) has rejected a proposal by prediction market Kalshi to allow users to bet on which party will control the chambers of Congress. The regulator deemed the contracts to involve unlawful gaming and activity, contrary to the public interest. Kalshi's CEO expressed disagreement with the decision but remains optimistic about the company's vision being recognized in the future. Consumer advocacy organization Better Markets supported the CFTC's decision, citing risks to election integrity and alleged violations of the Commodities Exchange Act in Kalshi's proposal.