James said that “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.”
Trump admin claims exclusive authority
The CFTC says it alone has the power to regulate platforms such as Kalshi and Polymarket under the Commodity Exchange Act, a US law that gives the CFTC exclusive jurisdiction over designated contract markets (DCMs).
“These are financial exchanges that offer financial instruments and operate across state lines,” Selig said yesterday. “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.”
We contacted the New York governor’s and attorney general’s offices today and will update this article if they provide any comment on the CFTC action.
