The CFTC invoked emergency authority to override New York State's attempt to shut down prediction market Kalshi, ordering it to continue operations despite a state AG lawsuit alleging illegal gambling. This marks a direct federal-state regulatory clash over prediction markets that could set precedent for the industry.
Background
Prediction markets like Kalshi have faced regulatory uncertainty in the US, with some states classifying them as illegal gambling while federal regulators view them as legitimate derivatives exchanges.
- Source
- Ars Technica
- Published
- Aug 13, 2026 at 12:33 AM
- Score
- 7.0 / 10