CFTC tells Kalshi to operate in New York despite suit
Kalshi, a prediction market platform, has been told by the US Commodity Futures Trading Commission (CFTC) to keep operating in New York, even though the state's attorney general, Letitia James, is suing them for allegedly running unlicensed gambling through sports predictions.
The lawsuit came after a federal court said New York could go ahead with its legal action against Kalshi.
Regulators clash over prediction markets
This case is turning into a tug of war between state and federal regulators over who controls prediction markets.
While New York sees these platforms as illegal gambling, the CFTC says they're federally regulated exchanges and should be allowed nationwide.
On August 11, CFTC Chair Mike Selig emphasized that Congress wanted these markets regulated at the national level, not by individual states.
Both sides are now trying to move the case to courts they think will favor their arguments, but there is no decision yet on where it will land.