The U.S. Commodity Futures Trading Commission said it has directed prediction market operator Kalshi to continue operating in New York, stepping into a growing dispute over how these platforms should be regulated. The move came after New York Attorney General Letitia James sued the company in late July and sought to shut the platform down. According to the CFTC, Kalshi asked for assistance, prompting the federal regulator to use what it described as its “emergency powers” to require continued operations. The action sharpens a broader conflict between federal commodities oversight and state-level enforcement. States argue that at least sports-related prediction markets function as gambling platforms and violate state rules, while CFTC Chair Mike Selig said Congress did not intend for derivatives exchanges to be subject to a regulatory framework built around state gambling laws.
The U.S. Commodity Futures Trading Commission said it has required prediction market operator Kalshi to keep operating in New York.
The step followed a lawsuit filed in late July by New York Attorney General Letitia James, who sought to shut the platform down. The CFTC said Kalshi asked for assistance, and the agency then used what it called its “emergency powers” to order the company to remain operational.
The action deepens a split between the federal commodities regulator and state regulators over prediction markets. States argue that at least sports-related prediction markets amount to gambling platforms and violate state rules. CFTC Chair Mike Selig said Congress did not intend for derivatives exchanges to be governed by a regulatory structure based on state gambling laws.
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