CFTC Blocks NY Attempt to Shut Down Prediction Market Exchange

The Commodity Futures Trading Commission (CFTC) has ordered Kalshi to continue operating its prediction market exchange. This decision comes after New York sought to shut down the platform, citing a market emergency.

The CFTC argued that forced liquidation of certain positions, including a hypothetical Bitcoin contract, could cause widespread financial disruption beyond just prediction markets.

This move counters New York's gambling law enforcement, which claims Kalshi's contracts are illegal sports wagers. However, a federal judge recently ruled Kalshi's contracts are not swaps under federal law, complicating jurisdiction.