- CFTC claims that the recent manipulation attempts on Polymarket highlight are highly susceptible.
- The CFTC has ordered Kalshi to suspend its election prediction market due to concerns about manipulation.
The Commodity Futures Trading Commission (CFTC) has raised serious concerns about the potential for manipulation in prediction markets, particularly in light of recent Kalshi events. In a new filing with the U.S. Court of Appeals for the D.C. Circuit on September 14th, the CFTC argued that these markets, which allow traders to bet on future events, are vulnerable to significant manipulation. This caution comes amidst a surge in election-related betting. Which the CFTC suggests could undermine public trust and the integrity of the electoral process.
The CFTC’s concerns were highlighted by recent attempts to manipulate markets on Polymarket. Where traders bet on Vice President Kamala Harris winning the 2024 presidential election. The Commission’s filing contends that such manipulation attempts could distort market predictions and affect public perception of election outcomes.
On September 12th, the CFTC also addressed procedural matters in the case. Requesting that a September 6th district court order be stayed pending further review. The administrative stay is intended to provide the court time to consider an emergency motion and does not reflect a decision on the underlying merits of the appeal.
CFTC ordered Kalshi to halt its election prediction market
The Commodity Futures Trading Commission (CFTC) ordered Kalshi to suspend its election prediction market. This directive is part of the CFTC’s broader concerns about potential manipulation risks within prediction markets. The regulatory body warns that such markets could undermine public trust in election processes. Citing recent attempts to manipulate betting on political outcomes.
The CFTC’s action reflects heightened scrutiny over the integrity of prediction markets amid growing concerns about their impact on public perception and electoral fairness. The order requires Kalshi to cease its election-related contracts until further notice.
Highlighted crypto News Today:
Circle and Sony Enable USDC on Soneium Blockchain for Creators
