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CFTC orders Kalshi to continue offering prediction markets in New York after state lawsuit
CoinDesk • • business
Key Points:
- The U.S. Commodity Futures Trading Commission (CFTC) ordered prediction market operator Kalshi to continue operating in New York, using its emergency authority after New York State sued to shut down the platform.
- New York Attorney General Letitia James filed the lawsuit against Kalshi, alleging the company violated state gambling laws by offering sports prediction markets without a license or tax payments.
- The CFTC maintains it has federal authority over prediction markets as they involve regulated financial swaps, opposing state regulations that classify these markets as gambling.
- CFTC Chairman Mike Selig criticized New York's attempt to regulate prediction markets under state gaming laws, emphasizing that these are interstate financial exchanges beyond state jurisdiction.
- Legal proceedings are ongoing, with Kalshi seeking to move the case to federal court while New York wants it returned to state court; a judge's ruling on these motions is pending.
