CFTC orders Kalshi to continue operating prediction markets in New York

TechFlow news, August 12, according to CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) announced on Tuesday that it has exercised emergency powers to order prediction market operator Kalshi to continue providing services in New York State, following a lawsuit filed by New York State Attorney General Letitia James on July 31 alleging that Kalshi operated sports prediction markets without permission from the state Gaming Commission, violating state gambling laws.

CFTC Chairman Mike Selig said in a statement that Congress did not intend for derivatives exchanges to be subject to fragmented regulation under state gambling laws, and prediction markets, as interstate financial instruments, should be uniformly regulated at the federal level. Currently, Kalshi has applied to transfer the case to federal court, the relevant motion awaits a judge's ruling, and the company previously liquidated relevant trades as required in litigation in Michigan.