Amy, I read that Congress needs to decide on crypto regulations and election betting. What’s going on there?

Yeah, it’s getting serious. The CFTC, which is a regulator in the U.S., feels ‘handcuffed’ because there aren’t enough clear rules for crypto and election bets.

Handcuffed? You mean they can’t control what’s happening in the crypto market?

Exactly. They can enforce some rules, but without new laws from Congress, they can’t fully protect investors or regulate things like election betting platforms.

Ah, so platforms like Kalshi and Polymarket are still operating, even with all these legal issues?

Yep! Kalshi even won a court case that let them continue their election betting, but the CFTC appealed it. Polymarket, on the other hand, operates offshore, so they have fewer restrictions.

Wait, but isn’t that risky? I mean, people betting on elections sounds like it could cause problems.

That’s what some people, including the CFTC, are worried about. They fear these markets could be influenced by foreign players or big money pushing odds in certain directions, which might affect public trust.

Sounds like a big mess. Why hasn’t Congress done anything yet?

Well, there are bills like the Financial Innovation and Technology Act, which would give the CFTC more power over crypto assets. But it’s stuck in Congress and probably won’t move forward until after the elections.

So, until then, it’s kind of a free-for-all?

Kind of. Platforms like Polymarket are booming with billions in trades, while Kalshi is trying to stay compliant by focusing on U.S. users only.

And they both show similar odds for the election, right?

Yes, they do. But critics say Polymarket’s global, less-regulated approach could allow manipulation since they don’t require strict ID checks like Kalshi does.

Wow, it seems like a lot to manage! Do you think Congress will act soon?

It’s hard to say. The CFTC chair doesn’t expect action this year, but maybe next year with a new Congress. Until then, these markets will keep growing, and the debate will continue.

I guess it’s a race against time to keep everything fair before things get out of hand!