CFTC orders Kalshi to keep trading through its New York fight

New York Attorney General Letitia James filed the state complaint July 31, seeking to block event contracts tied to sports, elections, culture and other subjects. Because Kalshi's principal place of business is in New York, the CFTC reads the proposed restriction as a potential nationwide shutdown rather than a state-only limit.

Two regulators are asserting incompatible authority

Kalshi is a federally registered designated contract market. The CFTC's position is that federal derivatives law governs the exchange; New York argues that parts of the product set violate state gambling law. The emergency order keeps the platform open while that jurisdictional question moves through court.

The order does not resolve whether particular contracts are lawful, nor does it end the state's case. It raises the stakes by putting the federal regulator's operating instruction in direct tension with the relief New York is asking a judge to grant.