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March 21, 2024

Threatening Democracy: Kalshi’s Sneaky Backdoor Attempt to Get the CFTC to Unleash Gambling on U.S. Elections via Prediction Markets

WASHINGTON, D.C.— Cantrell Dumas, Director of Derivatives Policy, issued the following statement in connection with the release of Better Markets’ frequently asked questions about Kalshi’s Attempt to get the CFTC to Unleash Gambling on U.S. Elections via Prediction Markets:

“A private profit maximizing company (KalshiEX, LLC) is attempting to unleash gambling on U.S. elections by claiming such betting is a derivatives contract regulated by the Commodities Futures Trading Commission (CFTC), rather than by the Federal Election Commission (FEC) or the states which actually govern elections and voting. Initially, these bets will be as much as $100 million. In addition to undermining democracy and almost certainly incentivizing election interference, this gambit violates the law, public policy, and the public interest. Moreover, the CFTC has no experience, expertise, or jurisdiction over elections or gambling, and has no business regulating and supervising betting on US elections.

“Fortunately, the CFTC agrees and agreed with a broad coalition of elected officials, advocates, policymakers, and concerned citizens. It rejected Kalshi’s request, thereby protecting democracy, markets, and investors. This decision protects all Americans who depend on the CFTC to do its real job regulating the derivatives and commodities markets, which are vital to all Americans.  Unfortunately, Kalshi has now sued the CFTC and the case is currently pending before a federal court.

“Because this matter has raised so many questions, we are releasing a set of frequently asked questions (FAQs) that address the key issues surrounding Kalshi’s attempt to get the CFTC to allow gambling on U.S. elections.”

Read our FAQ here.


Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit

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