CFTC invokes emergency powers to keep Kalshi operating in New York fight
The CFTC used emergency authority to order Kalshi to keep operating after New York sought a restraining order that could block the prediction-market exchange from offering event contracts nationwide. The agency said the state action created a market emergency and warned that shutting Kalshi could disrupt orderly trading and price discovery. The dispute centers on whether the Commodity Exchange Act preempts state gambling laws for event contracts traded on federally regulated exchanges. New York alleges Kalshi runs an unlicensed gambling business and seeks major damages and penalties. Kalshi argues states cannot shut down a federally licensed exchange, while New York says state gambling law still applies. The CFTC’s order preserves operations for now but does not resolve the underlying legal fight.
