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CFTC orders Kalshi to continue operating amid New York gambling lawsuit
The U.S. Commodity Futures Trading Commission (CFTC) has invoked emergency authority to order the prediction market Kalshi to continue its operations. This federal intervention directly counters a lawsuit filed by New York Attorney General Letitia James on July 31, which alleges that Kalshi operates an illegal, unlicensed gambling business through contracts tied to sports, elections, and culture.
New York is seeking a temporary restraining order to halt Kalshi’s offerings and is pursuing at least $36 billion in damages, including restitution, disgorgement, and penalties. The state argues that these prediction markets fall under local gambling statutes and require state-level licensing.
In response, the CFTC characterized the state’s enforcement action as a “major market disturbance” and a “market emergency.” CFTC Chair Michael Selig argued that the Commodity Exchange Act requires a uniform national derivatives market and that Congress did not intend for such markets to be subject to a “patchwork of state gaming laws.” The commission maintains that Kalshi’s event contracts are federally regulated swaps, asserting that New York lacks the authority to regulate these interstate financial markets.
Entities
Christopher Delgado · Commodity Futures Trading Commission · Goliath Ventures, Inc. · Kalshi · KalshiEX, LLC · Letitia James · Michael Selig · New York
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 12 SOURCES] New York filed its lawsuit against Kalshi on July 31. bitnewsbot.com · cryptonews.com.au · fxnewsgroup.com · www.blocktempo.com · www.world-today-news.com · +6 more
- [● 12 SOURCES] The CFTC invoked its emergency authority to order Kalshi to continue operating. bitnewsbot.com · cryptonews.com.au · fxnewsgroup.com · www.blocktempo.com · www.world-today-news.com · +6 more
- [● 12 SOURCES] New York alleges Kalshi operates an illegal, unlicensed gambling business through sports, culture, and election contracts. bitnewsbot.com · cryptonews.com.au · fxnewsgroup.com · www.blocktempo.com · www.world-today-news.com · +6 more
- [● 7 SOURCES] The CFTC stated that New York’s enforcement action and request for a temporary restraining order constituted a market emergency. bitnewsbot.com · cryptonews.com.au · fxnewsgroup.com · cointelegraph.com · crypto-times.jp · +1 more
- [● 8 SOURCES] CFTC Chair Michael Selig argued that the Commodity Exchange Act requires a uniform national derivatives market and that Congress did not intend for such markets to be subject to a patchwork of state-s bitnewsbot.com · cryptonews.com.au · fxnewsgroup.com · www.blocktempo.com · www.world-today-news.com · +2 more
- [● 11 SOURCES] New York is seeking at least $36 billion in compensatory damages, restitution, and penalties. bitnewsbot.com · cryptonews.com.au · fxnewsgroup.com · www.blocktempo.com · www.world-today-news.com · +5 more