NY judge denies CFTC motion to halt enforcement action against Kalshi
Judge Jed S. Rakoff denied, without prejudice, the CFTC’s emergency request for a temporary restraining order to stop New York from pursuing enforcement against prediction market operator Kalshi. He found the CFTC had not shown a strong likelihood of success on the merits or that it would suffer irreparable harm. The agency can renew the request before Judge Victor Marrero on Aug. 7. New York Attorney General Letitia James recently sued Kalshi, alleging it runs an illegal, unlicensed gambling business through contracts tied to sports, elections, and other events. The New York State Gaming Commission had already issued a cease-and-desist order. The dispute centers on whether federal commodities law preempts state gambling enforcement over event contracts: New York says they are wagers, while the CFTC and Kalshi say they are derivatives under the CFTC’s exclusive jurisdiction.
