Kalshi CEO Tarek Mansour lauded a “historic” outcome after the U.S. Commodity Futures Trading Commission (CFTC) dropped its appeal against the online prediction market platform.
According to a U.S. Court of Appeals filing, a request was made by the CFTC to allow the authority to voluntarily dismiss the case, with each party responsible for the accrued costs and fees to date.
The update effectively brings a two-year legal wrangle to a conclusion, paving the way for Kalshi and other lawful providers to offer election-based outcomes in the United States.
Back in 2023, the impasse materialized when the regulator blocked Kalshi from offering outcomes on the congressional elections.
In response, Kalshi filed legal action against the CFTC over its decision to prevent the prediction market from listing and clearing its political event contracts. The agency cited concerns of unlawful gaming and markets not in the public interest, but Kalshi’s legal action was fuelled by the position that the CFTC had acted beyond its authority.
It’s official. The D.C. Circuit has granted the CFTC's unopposed motion to dismiss its appeal in the Kalshi lawsuit over whether congressional control contracts involve “gaming.”
The appeal is dismissed. pic.twitter.com/gn6rbJ4E4R
— Daniel Wallach (@WALLACHLEGAL) May 7, 2025
The future of prediction markets in the U.S.
“Today is historic. We have always believed that doing things the right way, no matter how hard, no matter how painful, pays off. This result is proof of that,” exclaimed Tarek Mansour, CEO and co-founder of Kalshi.
“Kalshi’s approach has officially and definitively secured the future of prediction markets in America,” he told Reuters.
The apparent settlement of the dispute comes after a previous court ruling in September, in Kalshi’s favor. Now, this week’s dismissal confirms that outcome.
Much has changed over the last two years, including the regime at the White House.
With Donald Trump’s return to power, he has installed Brian Quintenz as the chair of the CFTC, and with it, a shift in policy in Washington.
The present Trump administration is known to want fewer regulatory checks on tech-based firms, while Quintenz formerly served on the board of Kalshi.
He has previously rallied for digital innovation in derivatives and has supported the deregulation of event-based contract trading.
The current political vista is a much brighter one for Kalshi, especially with an apparent green light coming from federal approval, but the platform is likely to still face significant obstacles from individual states.
Image credit: Kalshi
