New York · US Congress · CoinDesk
The CFTC had previously sued New York over its stance on prediction markets
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New York sued Kalshi on July 31 after a federal judge ruled against Kalshi's bid to block the state from filing a lawsuit.
Key facts
- New York sued Kalshi on July 31 after a federal judge ruled against Kalshi's bid to block the state from filing a lawsuit
- The CFTC had previously sued New York over its stance on prediction markets
- The U.S. Commodity Futures Trading Commission announced it had ordered prediction market operator Kalshi to continue operating in New York after the state filed a lawsuit seeking to shutter
- Kalshi has failed to obtain a license from the New York State Gaming Commission (Gaming Commission), sidestepping its obligation to pay taxes like licensed casinos and mobile sports gambling
Summary
The U.S. Commodity Futures Trading Commission announced it had ordered prediction market operator Kalshi to continue operating in New York after the state filed a lawsuit seeking to shutter the platform. The CFTC used its "emergency authority" to require Kalshi to continue operating after Kalshi asked for help following New York State Attorney General Letitia James' lawsuit against the company at the end of July, the federal regulator said in a Tuesday press release. The action sets up the latest clash between the federal commodities regulator and state regulators over prediction markets. CFTC Chairman Mike Selig reiterated that stance Tuesday, saying, "Congress did not intend for derivatives exchanges to be regulated under a patchwork of state gaming laws. "New York intends to make event contract derivatives waste away under its iron curtain of state gaming laws before the courts get the chance to issue final rulings," he said.