Federal Regulator Blocks New York From Shutting Down Kalshi Prediction Markets
Federal exclusive jurisdiction under the Commodity Exchange Act versus state consumer-protection and anti-gambling police power, still unresolved in court.
Federal exclusive jurisdiction under the Commodity Exchange Act versus state consumer-protection and anti-gambling police power, still unresolved in court.
On August 11 the CFTC issued an emergency order directing Kalshi to continue exchange functions after New York sought a TRO to halt its event contracts.
Why it matters: Whether event contracts remain available nationwide under uniform federal rules or face state-by-state injunctions that could fragment the market and affect tax revenue and under-21 access.
Date to watch: New York TRO hearing and related motions in the coming weeks as the case proceeds.
Sources:
- CFTC Press Release 9281-26 (2026-08-11)
https://www.cftc.gov/PressRoom/PressReleases/9281-26 - CFTC Market Emergency Declaration Order (2026-08-11)
https://www.cftc.gov/media/14471/OGC_MarketEmergencyDeclarationOrder081126/download - New York AG and Governor press release on Kalshi suit (2026-07-31)
https://ag.ny.gov/press-release/2026/governor-hochul-and-attorney-general-james-announce-new-york-has-sued-kalshi - Commodity Exchange Act §8a(9) emergency authority (2026-08-11)
https://www.cftc.gov/LawRegulation/CommodityExchangeAct/index.htm - 7 U.S.C. § 2(a)(1)(A) CFTC exclusive jurisdiction (2026-08-11)
https://www.law.cornell.edu/uscode/text/7/2 - Bloomberg reporting on CFTC order (2026-08-11)
https://www.bloomberg.com/news/articles/2026-08-11/cftc-orders-kalshi-to-keep-operating-despite-new-york-suit - The Block reporting on CFTC emergency authority (2026-08-11)
https://www.theblock.co/news/regulation/2026-08-11-cftc-flexes-emergency-authority-kalshi-operating-amid-new-york-lawsuit-411507
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