The U.S. Commodity Futures Trading Commission used its emergency authority on August 11, 2026, to order prediction-market exchange KalshiEX to continue operating in New York despite an ongoing state effort to shut it down. New York Attorney General Letitia James sued Kalshi on July 31, 2026, alleging unlicensed sports prediction markets, seeking over $36 billion in damages and a temporary restraining order blocking all event contracts nationwide. CFTC Chairman Mike Selig defended exclusive federal oversight of derivatives, arguing states cannot control these markets. The emergency order keeps Kalshi serving New York customers while courts decide whether such contracts constitute gambling or financial products.
This update represents a notable development in the Crypto sector. Organizations and founders tracking this space should evaluate potential strategic and technical implications on their operations.