Democratic Commissioner Kristin Johnson cited the need to preserve the integrity of the US’s electoral Democratic processes as a key force driving the new proposalA top Wall Street regulator hopes to send a strong message that gambling on democratic outcomes has no place in its financial markets.
In recent years, the CFTC has rejected an election-betting bid by derivatives exchange startup Kalshi, a firm that offers markets related to whether the US will ban TikTok within the year, Costco membership rates, and how many times the Federal Reserve will cut interest rates.
Democratic Commissioner Kristin Johnson cited the need to preserve the integrity of the US’s electoral Democratic processes as a key force driving the new proposal: Proponents of election betting cite concerns that investors will just move their money to unsanctioned, offshore markets where consumer protection goes out the window. Rep. Dusty Johnson wrote a letter to the CFTC that six other lawmakers on both sides of the aisle co-signed, raising concerns about pushing the event contracts market out of the US.