• The Commodity Futures Trading Commission (CFTC) has announced its review of contracts offered by KalshiEX, a prediction market provider that also supports crypto bets.
• CFTC aims to ensure the contracts’ fairness and regulatory compliance with a 30-day window for individuals to share their thoughts and opinions.
• Recently, the CFTC has taken legal action against William Koo Ichioka, accused of defrauding approximately 100 users, including crypto asset holders.
CFTC Scrutinizing Kalshi Contracts
The Commodity Futures Trading Commission (CFTC) has announced its review of contracts offered by KalshiEX, a prediction market provider that also supports crypto bets. The regulator says the move aims to ensure the contracts’ fairness and regulatory compliance.
Public Input Encouraged
CFTC examines Kalshi’s political prediction contracts and provides a 30-day window for individuals to share their thoughts and opinions on these agreements. The Commission has posed specific questions about the agreements in order to make an informed decision regarding the acceptability of the contracts by getting necessary feedback from public.
Draft Proposal Introduced By House Republicans
Earlier this month, a draft proposal was introduced by the House Republicans aiming to clarify roles of regulatory bodies. As described in the proposal, CFTC would regulate crypto commodities while SEC would handle digital securities in order to have comprehensive regulatory framework for cryptocurrency encouraging favorable environment and protecting market participants.
Legal Action Taken Against William Koo Ichioka
Recently, CFTC has taken legal action against William Koo Ichioka who is accused of defrauding approximately 100 users including crypto asset holders. He allegedly failed to fulfill his promises misappropriating over $21 million from non-family investors and about $40 million from his family members.
Conclusion
The CFTC is taking steps towards ensuring fairness and compliance with regards to trading contracts offered by companies like KalahiEX which allows participants to speculate on which political party will achieve control over distinct sections of US Congress through monetary transactions rather than physical assets.