Polymarket · New York · CryptoSlate
A $36 billion suit just turned Kalshi’s $40 billion valuation race into a federal market emergency
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The Commodity Futures Trading Commission (CFTC) has ordered Kalshi to keep operating after the prediction-market exchange declared a market emergency tied to New York’s enforcement campaign.
Key facts
- Kalshi processed about $27 billion in trading during the World Cup and attracted roughly 3 million users over the tournament
- The company is reportedly in advanced talks to raise a Series G round at a valuation of about $40 billion, nearly double the $22 billion valuation attached to its May funding round
- It also comes as New York authorities broaden their scrutiny of prediction markets beyond Kalshi’s legal status, even as the company continues posting rapid growth and seeks a valuation of about $40
- The agency said New York is seeking temporary relief that could prevent Kalshi from offering event contracts nationwide and expose the exchange to more than $36 billion in damages
Summary
01 The CFTC ordered Kalshi to keep operating after it declared a market emergency tied to New York enforcement. 02 The agency says shutting Kalshi could disrupt a federally regulated derivatives market and expose it to over $36 billion in damages. 03 The fight now spans state gambling law and city consumer-protection scrutiny, while courts still must decide who has final authority. The move marks the strongest federal intervention yet in the widening fight over whether states can apply gambling laws to event contracts offered on CFTC-regulated exchanges.