CFTC Orders Kalshi to Keep Operating Amid New York Lawsuit
The agency said New York’s action could shut down Kalshi nationwide and disrupt the uniform derivatives market.
- On Tuesday, the Commodity Futures Trading Commission invoked emergency powers, ordering Kalshi to continue normal operations as a New York lawsuit threatens to shut down the prediction market exchange nationwide.
- New York Attorney General Letitia James sued Kalshi on July 31, alleging the exchange operates an unlicensed gambling business and seeking at least $36 billion in damages, restitution, and penalties.
- To defend its congressionally granted exclusive jurisdiction over derivatives, the Commission sued Arizona, Connecticut, Illinois, Kentucky, Minnesota, New Mexico, New York, Rhode Island, and Wisconsin to prevent state gambling enforcement.
- Judge Jed Rakoff denied the agency's emergency request for a temporary restraining order on July 7, finding insufficient likelihood of irreparable harm, while the case remains in federal court with remand proceedings pending.
- The CFTC maintains that New York's requested order could create a "major market disturbance" by forcing liquidation of open positions, while long-term rulemaking for event contract review remains pending.
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36 Articles
Ars Technica
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CFTC Directs Kalshi To Keep Running Prediction Markets Nationwide After New York Lawsuit
The CFTC is exercising emergency authority to order KalshiEX to continue operating its prediction market platform across the country following New York's lawsuit seeking a nationwide shutdown and over $36 billion in damages. The post CFTC Directs Kalshi To Keep Running Prediction Markets Nationwide After New York Lawsuit appeared first on The Daily Hodl.
CFTC Invokes Emergency Powers to Keep Kalshi Trading Even if New York Wins a Restraining Order
The Commodity Futures Trading Commission ordered Kalshi on Tuesday to continue operating its exchange in line with its normal practices and the Commodity Exchange Act’s core principles, using the emergency authority in Section 8a(9) of the act. The order responds to a notice Kalshi filed on August 1 warning of “an imminent market emergency” if New York obtained a temporary restraining order against it. Attorney General Letitia James filed New Yo…
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