The Commodity Futures Trading Commission flexed its emergency authority and ordered Kalshi to keep operating after the prediction market platform was sued last month in New York.
On Tuesday, the CFTC said Kalshi should keep operating under its rules, marking CFTC Chair Michael Selig's latest move to assert jurisdiction over the ever-expanding prediction markets.
"New York has no business regulating these interstate financial markets," Selig said in a statement.
"The Commission is required by law to ensure order in these markets, and that is what we have done today.” In July, New York Attorney General Letitia James sued Kalshi, alleging it was operating an illegal gambling business.
She requested a temporary restraining order to stop the company from operating in New York, along with restitution for users, disgorgement of profits, and civil penalties that could total at least $36 billion.
