CFTC Directs Kalshi To Keep Running Prediction Markets Nationwide After New York Lawsuit

Federal regulators are stepping in to keep a major prediction market platform running nationwide despite a state effort to halt operations.

The U.S. Commodity Futures Trading Commission (CFTC) says it used emergency powers after the platform notified the agency of a market emergency triggered by New York’s July 31st lawsuit seeking a temporary restraining order to stop all event contracts nationwide and more than $36 billion in damages.

Says CFTC Chairman Michael S. Selig,

“New York intends to make event contract derivatives waste away under its iron curtain of state gaming laws before the courts get the chance to issue final rulings. Congress did not intend for derivatives exchanges to be regulated under a patchwork of state gaming laws. These are financial exchanges that offer financial instruments and operate across state lines. They match the bid from a resident of one state with the offer of a resident from another state and submit the trade to a clearinghouse that backstops the transactions of customers throughout the country. New York has no business regulating these interstate financial markets. The Commission is required by law to ensure order in these markets, and that is what we have done today.”

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