Federal regulators are stepping in to keep a major prediction market platform running nationwide despite a state effort to halt operations.
The U.S. Commodity Futures Trading Commission (CFTC) says it used emergency powers after the platform notified the agency of a market emergency triggered by New York’s July 31st lawsuit seeking a temporary restraining order to stop all event contracts nationwide and more than $36 billion in damages.
Says CFTC Chairman Michael S. Selig,
“New York intends to make event contract derivatives waste away under its iron curtain of state gaming laws before the courts get the chance to issue final rulings. Congress did not intend for derivatives exchanges to be regulated under a patchwork of state gaming laws. These are financial exchanges that offer financial instruments and operate across state lines. They match the bid from a resident of one state with the offer of a resident from another state and submit the trade to a clearinghouse that backstops the transactions of customers throughout the country. New York has no business regulating these interstate financial markets. The Commission is required by law to ensure order in these markets, and that is what we have done today.”
New York’s suit alleges the platform runs an illegal, unlicensed gambling operation that exposes users aged 18 to 20 to risks, below the state’s legal age of 21.
“Kalshi has chosen to ignore New York’s gaming laws, which exist to protect consumers, prevent problematic gambling, deliver funding for critical public services, and ensure that every company plays by the same rules,” Governor Kathy Hochul said.
“New York’s gambling laws protect children from underage betting and help combat gambling addiction,” said Attorney General Letitia James.
“No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple. By ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process. We are taking them to court to uphold our laws and protect New Yorkers.”
A July 8th federal court ruling had already denied the platform’s request for a preliminary injunction against New York’s enforcement.
“Kalshi has not, therefore, made a clear or substantial showing that it is likely to succeed on the merits,” U.S. District Judge Analisa Torres wrote.
The CFTC maintains exclusive jurisdiction under the Commodity Exchange Act to ensure a uniform national market.
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The post CFTC Directs Kalshi To Keep Running Prediction Markets Nationwide After New York Lawsuit appeared first on The Daily Hodl.
The CFTC is exercising emergency authority to order KalshiEX to continue operating its prediction market platform across the country following New York’s lawsuit seeking a nationwide shutdown and over $36 billion in damages.
The post CFTC Directs Kalshi To Keep Running Prediction Markets Nationwide After New York Lawsuit appeared first on The Daily Hodl. Financeflux, CFTC, Kalshi, new york, News, prediction market
This articles is written by : Nermeen Nabil Khear Abdelmalak
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