Plans by prediction market Kalshi to let users bet on which party will control the chambers of Congress have been turned down by regulators at the Commodity Futures Trading Commission (CFTC).
The regulator said the contracts would involve illegal gaming and activity and would be “contrary to the public interest” after KalshiEx LLC made a submission in June 2023.
The contracts would have been settled in cash and let users bet on yes or no questions about whether the Republicans or Democrats would control the House and Senate in a given term.
Last year, an appeals court ruled that another prediction market, PredictIt, should be allowed to continue operating until a final court rulings, despite a CFTC order to shut down.
A representative of Kalshi did not immediately respond to a CoinDesk request for comment.