The crypto reflection of the upcoming November elections PolitFi It was expected to happen. But for now, it is not like that. People caused fluctuations based on the change in the candidates’ winning rates with meme coins. After this continued for a while, crypto prediction platforms started to look more attractive. Of course, the US CFTC took action on this issue.
Crypto and the US Elections
Biden, Trump, JFK themed meme coins were getting much more attention a few months ago. With Trump being attacked with weapons, we saw Trump-focused tokens making significant gains. After that, this interest started to wane. In addition to the general lack of appetite in cryptocurrency markets, this lack of interest is based on prediction markets.
US elections crypto- There are two ways for people who want to invest their money. The first is to wait for the success of their favorite candidates with PolitFi tokens. The other way is to tie money to the fate of their candidates much more comfortably in prediction markets. Considering the scam tokens, the fluctuation of PolitFi altcoins depending on BTC performance, etc., the second option started to make more sense to investors.
So while we expect a US election in the shadow of PolitFi, we are expecting a US election in the shadow of “biased polls” with millions of dollars tied up in crypto protocols’ election predictions.
CFTC Takes Action
The US CFTC is not happy with the situation. The Commodity and Futures Trading Commission (CFTC), lost its initial lawsuit against Kalshi, but yesterday the prediction market filed a new motion with the court. Now the CFTC is once again arguing that the ruling in the case should be stayed while the appeals process continues. The filing filed Saturday argues that Kalshi could exploit the confusion of the legal process to create grievances during the current election season.
“Kalshi’s contracts fall within the usual definition of ‘gambling’ as they involve betting something of value on the outcome of elections.”
And yes, this is exactly gambling and it is illegal in many countries. Trump HarrisConsidering that it has a 7 point difference in these protocols, investors are far from reality. The CFTC request also includes the following details.
“An election is not a game. It is not staged for entertainment or sport. And unlike the outcome of a game, the outcome of an election has huge external and economic consequences.”
Kalshi acknowledges the potential for abuse, but cites examples of protocols that already do the same thing (illegally). The CFTC is in favor of blocking it because it would harm the public interest. The final section of the request includes the following detail.
“A pharmacy cannot distribute cocaine just because it is available on the black market. The Commission has found that election gambling on U.S. futures markets poses a serious threat to election integrity. The fact that another platform offers it without CFTC oversight is no justification for allowing election gambling to proliferate.”
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
