Kalshi Seeks Repeal of 1958 Onion Futures Ban

Key facts

• A 1958 law prevents onion futures trading in the U.S.
• Student campaigners are pushing for the repeal of the Onion Futures Act.
• Onion prices have doubled from a year earlier.
• The ban leaves a $6.75 billion industry without hedging tools available to other commodities.
• The law was enacted after a scheme to rig onion prices in the 1950s.

A student campaign is advocating for the repeal of the 1958 Onion Futures Act, a law that prohibits the trading of onion futures on U.S. exchanges. The act, established after a 1950s scheme to manipulate onion prices, also restricts prediction markets from trading on onion prices and box office receipts. Onion prices have doubled in the past year, leaving the $6.75 billion industry exposed to significant volatility without the hedging mechanisms available to other agricultural commodities. The Commodity Futures Trading Commission Chairman, Mike Selig, has shown support for broadening the range of tradable commodities, lending weight to the repeal efforts.