CFTC uses unprecedented authority to keep Kalshi operating

Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company. The Commodity Futures Trading Commission (CFTC) has invoked unprecedented emergency authority to allow prediction market Kalshi to continue operating, directly responding to a lawsuit filed by New York State Attorney General Letitia James. Summary CFTC used emergency authority to keep Kalshi operating as New York moved to shut down the prediction market. New York accused Kalshi of operating without a state gaming license and is seeking penalties and forfeiture of profits. The CFTC maintains that event contracts fall under federal derivatives law and should not be subject to state gaming rules. Kalshi remains locked in legal disputes with several states over whether its event contracts amount to regulated derivatives or gambling. The CFTC has already sued nine states– Arizona, Connecticut, Illinois, Kentucky, Minnesota, New Mexico, New York, Rhode Island, and Wisconsin. The Commission has also filed amicus briefs in the U.S. Court of Appeals for t...