CFTC Uses Emergency Powers to Keep Kalshi Running in New York

TLDR

• The CFTC invoked emergency authority to order prediction market platform Kalshi to keep operating in New York
• New York sued Kalshi on July 31, claiming it runs an unlicensed gambling business offering sports prediction markets
• New York is seeking at least $36 billion in damages plus penalties of up to three times Kalshi’s alleged gains
• The CFTC argues federal law gives it exclusive authority over prediction markets, overriding state gambling laws
• The dispute extends to nine states in total, with the CFTC filing suits against all of them

The CFTC stepped in Tuesday with emergency powers to keep prediction market platform Kalshi running in New York, escalating a clash between federal and state regulators over who controls the growing prediction market industry.

🇺🇸 BREAKING: The CFTC invokes emergency authority to keep Kalshi alive against New York's $36 BILLION shutdown demand.

New York AG Letitia James sued to shut the prediction market down, calling it illegal gambling that exposed residents, including minors, to financial risk.… pic.twitter.com/XwEmDwXiwX

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