CFTC orders Kalshi to keep operating in $36B New York fight

The Commodity Futures Trading Commission used its emergency authority on Aug. 11 to direct KalshiEX to continue operating under its normal practices and the Commodity Exchange Act’s core principles, escalating a federal state dispute over prediction markets. Summary CFTC ordered Kalshi to continue exchange operations after declaring New York’s lawsuit a market emergency. New York seeks at least $36 billion and broad restrictions on Kalshi’s event contract business. Kalshi notified the CFTC that a temporary restraining order could force liquidations and disrupt markets. CFTC says derivatives law gives it exclusive jurisdiction over event contracts traded on registered exchanges. Courts remain divided over whether federal commodities law preempts state gambling restrictions on prediction markets. The action followed an Aug. 1 notice from Kalshi warning that New York Attorney General Letitia James’ July 31 lawsuit could create a market emergency. New York is seeking at least $36 billion in damages and other relief while alleging that Kalshi operates an unlicensed gambling business. CFTC says New York action threatens Kalshi market stability In its order, the CFTC said New York’s reque...