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NY judge denies CFTC bid to pause enforcement against Kalshi
The decision leaves New York Attorney General Letitia James’s enforcement case against Kalshi intact and allows the CFTC to renew its request before Judge Victor Marrero on Aug. 7.
A New York judge denied without prejudice an emergency request by the U.S. Commodity Futures Trading Commission to temporarily halt New York’s enforcement action against prediction market operator Kalshi, keeping the state case moving forward, according to Cointelegraph.
The judge said the CFTC had not shown a high likelihood of success on the merits or a likelihood of irreparable harm. The CFTC can renew the motion before Judge Victor Marrero on Friday, Aug. 7, the order indicated.
New York Attorney General Letitia James sued Kalshi last Friday, alleging the company runs an illegal, unlicensed gambling business by offering contracts tied to sports, elections and other events. New York’s State Gaming Commission previously issued Kalshi a cease-and-desist order in October 2025.
The ruling is another development in a jurisdictional dispute over whether federal commodities law preempts state gambling enforcement for event contracts traded on CFTC-regulated exchanges. State authorities view the contracts as wagers subject to state gambling rules, while the CFTC and Kalshi argue the products are derivatives within the CFTC’s exclusive jurisdiction.