CFTC Orders Kalshi to Keep Operating Amid New York Lawsuit
The agency said New York’s action could shut down Kalshi nationwide and disrupt the uniform derivatives market.
- On Tuesday, the Commodity Futures Trading Commission invoked emergency powers and ordered Kalshi to continue normal operations as a New York lawsuit threatens to shut down the prediction market exchange nationwide.
- New York Attorney General Letitia James sued Kalshi on July 31, alleging the exchange operates an unlicensed gambling business and seeking at least $36 billion in damages, restitution, and penalties.
- To defend its congressionally granted exclusive jurisdiction over derivatives, the Commission sued Arizona, Connecticut, Illinois, Kentucky, Minnesota, New Mexico, New York, Rhode Island, and Wisconsin, arguing states cannot shut down federally licensed exchanges.
- Judge Jed Rakoff denied the agency's emergency request for a temporary restraining order, finding insufficient evidence of irreparable harm, while the case remains in federal court with remand proceedings pending.
- The CFTC maintains that New York's requested relief could create a "major market disturbance" by forcing liquidation of open positions, while long-term rulemaking for event contracts remains pending without a set timetable.
18 Articles
18 Articles
'Significant overreach': Prediction market responds to lawsuit from NY Attorney General
ALBANY, N.Y. (NEWS10) - Prediction market giant "Kalshi" is responding after New York State Attorney General Letitia James announced a lawsuit against the company, claiming it's an "illegal, unlicensed gambling operation." "The way that the exchange functions is so different as a business model from a traditional gambling platform," Kalshi's Head of Enforcement Robert DeNault [...]
CFTC Orders Kalshi to Stay Open as New York Seeks $36 Billion
The Commodity Futures Trading Commission (CFTC) ordered Kalshi yesterday (Tuesday) to keep its exchange operating. The agency declared New York's attempt to shut the prediction-market platform a market emergency.The order issued Tuesday directs Kalshi to continue its normal exchange functions under the Commodity Exchange Act. It does not end New York's lawsuit, but places a federal regulatory command directly against the shutdown state officials…
Coverage Details
Bias Distribution
- 100% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
