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CFTC orders Kalshi to keep trading after market emergency notice
The order follows New York Attorney General Letitia James lawsuit filed July 31 seeking to stop Kalshi event contracts nationwide and includes more than $36 billion in damages.
The U.S. Commodity Futures Trading Commission has invoked emergency authority to keep KalshiEX operating after the exchange notified the agency of a market emergency, according to Decrypt.
Kalshi filed the notification after New York Attorney General Letitia James sued the platform in state court on July 31, asking for a restraining order to block Kalshi from offering event contracts anywhere in the country, and seeking more than $36 billion in damages.
CFTC Chairman Michael Selig said New York’s move was aimed at ending the market before courts rule, arguing the exchange is an interstate financial venue that matches orders across states and clears trades centrally, rather than a gambling operation. The CFTC also said it has sued nine states over efforts to police event contracts.
The agency’s order directs KalshiEX to continue operating under the Commodity Exchange Act’s core principles. Decrypt reported the CFTC has also sued multiple states during the year and has filed amicus briefs in the Sixth and Ninth Circuits and before the Supreme Judicial Court of Massachusetts, while separate court outcomes have gone against Kalshi in New York.