CFTC Declares Market Emergency to Keep Kalshi Running Amid New York Lawsuit
CFTC declares market emergency, orders Kalshi to continue to operate in New York
The Commodity Futures Trading Commission invoked its emergency authority after KalshiEX notified it of a market emergency caused by New York Attorney General Letitia James's lawsuit seeking to halt all event contracts and $36 billion in damages. The CFTC ordered Kalshi to continue operating, arguing that state gaming laws cannot regulate interstate derivatives markets. The agency has sued several states to protect its jurisdiction.
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.