Prediction Markets

Federal Regulators Should Approve Election Prediction Markets

Federal Regulators Should Approve Election Prediction Markets

The US Commodity Futures Trading Commission (CFTC) continues to wrestle with how to best regulate prediction markets. The commission is expected to make a decision as soon as this week on whether the startup Kalshi can offer a market on the outcome of the upcoming midterms. Election prediction markets have proven to be a powerful tool for forecasting elections and are typically more accurate, timely, and complete than conventional methods. Kalshi’s proposal does not pose a risk to the integrity of the US election system. Approving Kalshi’s submission would be a step in the right direction for the commission and promotes the public interest