New York · The Block
CFTC flexes emergency authority to keep Kalshi operating amid New York suit
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The Commodity Futures Trading Commission flexed its emergency authority and ordered Kalshi to keep operating after the prediction market platform was sued last month in New York.
Key facts
- On Tuesday, the CFTC said Kalshi should keep operating under its rules, marking CFTC Chair Michael Selig's latest move to assert jurisdiction over the ever-expanding prediction markets
- In July, New York Attorney General Letitia James sued Kalshi, alleging it was operating an illegal gambling business
- The Commodity Futures Trading Commission flexed its emergency authority and ordered Kalshi to keep operating after the prediction market platform was sued last month in New York
- New York has no business regulating these interstate financial markets," Selig said in a statement
Summary
On Tuesday, the CFTC said Kalshi should keep operating under its rules, marking CFTC Chair Michael Selig's latest move to assert jurisdiction over the ever-expanding prediction markets. "New York has no business regulating these interstate financial markets," Selig said in a statement. In July, New York Attorney General Letitia James sued Kalshi, alleging it was operating an illegal gambling business. The New York Attorney General argued that prediction markets meet the legal definition of gambling and alleged that Kalshi has exposed New York residents, including individuals under the state’s legal gambling age of 21, to “serious personal and financial risk.” The lawsuit also alleges that Kalshi has avoided paying applicable taxes.