CFTC Invokes Emergency Powers to Force Kalshi NY Operations Amid Jurisdiction Clash

CFTC uses emergency authority to block NY shutdown of Kalshi, asserting federal jurisdiction over prediction markets and rejecting state legal challenges.

Woofun AI reports that the CFTC invoked emergency powers on August 12 to mandate Kalshi's continued operations in New York, directly countering state legal efforts to halt the platform. New York Attorney General Letitia James previously sued Kalshi for alleged licensing violations and tax evasion regarding sports prediction markets, a case where a federal judge denied Kalshi's motion to block the state's actions.

CFTC Chairman Mike Selig stated that Congress did not intend for derivatives platforms to face fragmented state regulation, classifying prediction markets as federally regulated swap products within interstate financial markets. Selig criticized New York for attempting to suppress these activities before a final court ruling, intensifying the ongoing dispute between federal and state authorities over regulatory jurisdiction.