Morning Minute: The CFTC Bails Out Kalshi in NY
The CFTC used emergency authority to keep Kalshi operating in New York after the state sued to block its sports prediction contracts. New York says these contracts are gambling products that bypass state licensing and taxes, while the CFTC says they are federally regulated derivatives and should not face a patchwork of state gaming laws. The dispute matters because Kalshi’s business is surging: it has reportedly reached a $4 billion annualized revenue run rate, roughly double two months earlier, and is raising money at a $40 billion valuation. This is the CFTC’s third intervention supporting Kalshi, but the core legal fight is still unresolved. The broader question is whether a federal market license can override state-level bans, or whether states can each block these products.
