Cases & Deals

Kalshi files challenge to CFTC order rejecting listing of its Congressional Control Contracts

Client(s) KalshiEX LLC

Jones Day is representing KalshiEX LLC (Kalshi) in litigation against its regulator, the Commodity Futures Trading Commission (CFTC), challenging the CFTC's recent order to prohibit Kalshi from listing certain political event contracts on its regulated derivatives exchange. Filed in the United States District Court for the District of Columbia, the complaint alleges that the CFTC's order disapproving those contracts violates the Administrative Procedure Act.

Kalshi's event contracts--a type of regulated derivative--relate to which political party will control each chamber of the United States Congress following the upcoming election. As such, these contracts have been designed to serve important risk hedging functions. Risk hedging is an essential function of the derivatives markets, and the contracts are completely consistent with the requirements of the governing statute, the Commodity Exchange Act.

KalshiEX LLC v. Commodity Futures Trading Commission, No.1:23-cv-03257 (D.D.C.)