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CFTC orders Kalshi to keep operating in New York as court fight looms
The regulator cited emergency authority to keep Kalshi’s New York sports contracts running while the multi state and federal legal cases remain unresolved.
The US Commodity Futures Trading Commission has intervened to block New York from shutting down Kalshi’s prediction market operations, ordering the platform to keep operating in the state under emergency authority.
Decrypt reported the move came days after New York Attorney General Letitia James sued to block Kalshi’s sports contracts, as the dispute centers on whether the products are federally regulated swaps or effectively gambling subject to state licensing and taxes.
The CFTC said New York is trying to make the contracts “waste away” under state gaming rules, while Chairman Mike Selig argued Congress did not intend derivatives exchanges to be governed by a patchwork of state gaming laws.
Kalshi’s growth and valuations are tied to the outcome, with Decrypt citing The Information that the company has reached a more than $4 billion annualized revenue run rate, while the underlying cases continue and even an earlier judge ruling against Kalshi’s bid to stop the suit leaves the question of nationwide licensing unresolved.