CFTC uses emergency authority to order Kalshi to keep operating in New York
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- #24
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What happened
On 11 August 2026 the U.S. Commodity Futures Trading Commission (CFTC) said it had exercised its emergency authority after Kalshi's exchange, KalshiEX, notified it of a market emergency, and directed the exchange to keep operating in line with the Commodity Exchange Act's Core Principles. Bloomberg reported that the order told Kalshi, headquartered in New York City, to continue serving customers in the state, and that the CFTC said it has "exclusive jurisdiction" over its registered entities, including those that trade event contracts.
KalshiEX's notice followed a complaint that New York Attorney General Letitia James filed against it in state court on 31 July. According to the CFTC, New York seeks a temporary restraining order that would bar KalshiEX from offering all event contracts nationwide, plus more than $36 billion in damages. CFTC Chairman Michael S. Selig said Congress did not intend derivatives exchanges to be regulated under a patchwork of state gaming laws, and argued that New York has no authority over these interstate markets. The CFTC said it has sued nine states, including New York, to protect its jurisdiction. Its release reports no ruling on New York's request.
Key points
- On 11 August 2026 the CFTC invoked emergency authority and directed KalshiEX to keep operating.1
- New York's attorney general sued KalshiEX in state court on 31 July.1
- The suit seeks a nationwide bar on Kalshi's event contracts and more than $36 billion in damages.1
- The CFTC says it has sued nine states, including New York, to protect its jurisdiction.1
- Bloomberg reported the order directs Kalshi to keep serving customers in New York.2
Why it matters
The state suit asks for a nationwide bar on Kalshi's event contracts and more than $36 billion in damages. The federal order is a counterweight, but the CFTC release reports no ruling on the state's request.
The CFTC has sued nine states over their actions against exchanges it regulates, so the question of who regulates event contracts is contested in several places, not only for Kalshi.
In context
| Round | Date | Post-money valuation | Raised | Led by |
|---|---|---|---|---|
| Series C | Jun 25, 2025 | $2.0B | $185M | Paradigm |
| Series D | Oct 10, 2025 | $5.0B | $300M | Andreessen Horowitz and Sequoia Capital |
| Series E | Dec 2, 2025 | $11B | $1.0B | Paradigm |
| Series F | May 7, 2026 | $22B | $1.0B | Coatue |
| Series F extension | May 20, 2026 | $22B | $200M | Unknown |
Updated
Fact-check
- On 11 August 2026 the CFTC used emergency authority, after a market emergency notice from KalshiEX, to direct the exchange to keep operating.Confirmed by [1] CFTC, whose release is dated 11 August 2026.Verified
- New York Attorney General Letitia James filed a complaint against KalshiEX in state court on 31 July.Confirmed by [1] CFTC.Verified
- The suit seeks a temporary restraining order barring all event contracts nationwide and more than $36 billion in damages.Confirmed by [1] CFTC; this is the CFTC's description of the suit.Verified
- Chairman Michael S. Selig said Congress did not intend derivatives exchanges to be regulated under a patchwork of state gaming laws.Confirmed by [1] CFTC.Verified
- The CFTC has sued nine states, including New York, to protect its jurisdiction.Confirmed by [1] CFTC, which lists Arizona, Connecticut, Illinois, Kentucky, Minnesota, New Mexico, New York, Rhode Island and Wisconsin.Verified
- The order directs Kalshi, headquartered in New York City, to continue serving customers in New York, and the CFTC claims exclusive jurisdiction.Rests on the writer's read of [2] Bloomberg, which returned 403 for the checker; [1] CFTC does not use the New York customers wording.Partly verified
Sources
- [1]CFTC (opens in a new tab)CFTC Exercises Emergency Authority to Ensure Market StabilityCongress did not intend for derivatives exchanges to be regulated under a patchwork of state gaming laws.
- [2]Bloomberg (opens in a new tab)CFTC Orders Kalshi to Keep Operating Despite New York Suitexclusive jurisdiction
