The U.S. Commodity Futures Trading Commission announced it had ordered prediction market operator Kalshi to continue operating in New York after the state filed a lawsuit seeking to shutter the platform.
The CFTC used its "emergency authority" to require Kalshi to continue operating after Kalshi asked for help following New York State Attorney General Letitia James' lawsuit against the company at the end of July, the federal regulator said in a Tuesday press release.
The action sets up the latest clash between the federal commodities regulator and state regulators over prediction markets. States have argued that prediction markets — at least sports-related markets — are gambling platforms that infringe on state regulations, while the CFTC has maintained it has authority over all prediction markets because they offer federally regulated swaps.
CFTC Chairman Mike Selig reiterated that stance in a statement Tuesday, saying, "Congress did not intend for derivatives exchanges to be regulated under a patchwork of state gaming laws."
