Prediction market Kalshi's request to create contracts linked to U.S. election outcomes should be rejected, according to staff of the regulator weighing the request, Bloomberg reported.

Their recommendations are not binding. Commissioners at the U.S. Commodity Futures Trading Commission ultimately decide, though staff members' advice carries weight.

Read more: Prediction Market Kalshi Signals It Sees CFTC's Blessing for Midterm Election Bets