CFTC orders Kalshi to continue operating in New York

The U.S. Commodity Futures Trading Commission has ordered prediction market platform Kalshi to keep operating in New York in response to a lawsuit by New York state prosecutors seeking to halt its business there, CoinDesk reported. After New York Attorney General Letitia James sued Kalshi, the CFTC exercised emergency authority and directed the company to continue providing trading services in the state. CFTC Commissioner Mike Selig made clear the agency’s position that prediction markets are financial derivatives subject to federal law and that state gambling laws cannot regulate federally supervised futures exchanges. New York state previously filed suit in late July, arguing Kalshi’s sports-related prediction markets amounted to an unlicensed illegal gambling platform and seeking a service suspension and disgorgement of profits. Kalshi’s annualized revenue has also topped $4 billion.