- CFTC Pushes to Block Election Markets
- Congressman Urges CFTC to Regulate, Not Ban, Election Markets
- Crypto a Key Issue for Voters?
The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against prediction platform Kalshi, citing concerns over election betting market manipulation. Despite a partial court victory, the platform continues to face temporary stay orders.
CFTC Pushes to Block Election Markets
The United States Commodity Futures Trading Commission (CFTC) has raised concerns about potential manipulation in prediction markets in a recent filing against the US-based prediction platform Kalshi. The regulator specifically referred to examples of market manipulation in competitor platforms like Polymarket and PredictIt, to highlight the risks associated with election betting markets. For instance, one group of traders manipulated a market on Vice President Kamala Harris's chances in the 2024 US presidential election, while another faked a poll to affect the price of a contract related to Senator Debbie Stabenow’s re-election. Kalshi also offers election-related betting and had a partial victory on September 6 when District Court Judge Jia Cobb ruled that the CFTC had overstepped its authority by ordering the platform to stop its election markets.
Congressman Urges CFTC to Regulate, Not Ban, Election Markets
New York Congressman Ritchie Torres argued that rather than banning election betting contracts, US regulators should focus on creating a regulatory framework to prevent bad actors from dominating these markets. In a letter to the US CFTC Chairman Rostin Behnam, Torres suggested that the commission should work towards regulation rather than prohibition. He also believes it is necessary for the CFTC to concentrate on promoting responsible innovation in financial markets and offered his support in addressing concerns and providing necessary resources. Torres warned that the CFTC’s ongoing legal battle to ban election betting contracts could cause broader harm by delaying crucial regulations meant to protect election integrity and consumers.
Crypto a Key Issue for Voters?
As the 2024 US election season begins, the crypto industry is rallying behind candidates who are seen as supportive of digital assets. Dr. Tonya M. Evans, a law professor at Pennsylvania State University, recently shared some insights on how cryptocurrency could influence the election outcome. Dr. Evans revealed that the race will likely be determined by very narrow margins, and while crypto could play a role, it may not be the decisive factor for voters. She explained that pro-crypto voters who also care about other issues are unlikely to base their decisions only on candidates' crypto policies.
In conclusion, election betting and cryptocurrency remain significant topics as the 2024 US elections approach. While the CFTC continues to debate the legality of election betting, congressmen and crypto industry representatives advocate for sensible regulation and innovation.
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