Federal Government Demands That Kalshi Keep Operating in New York State Despite Lawsuit The recent dispute between New York State and the US Commodity Futures Trading Commission (CFTC) over prediction market operator Kalshi has highlighted the contentious relationship between federal and state regulators in the evolving world of financial derivatives.
The CFTC's insistence that Kalshi continue operating in New York despite a lawsuit from the state's Attorney General Letitia James raises questions about the limits of state authority versus federal jurisdiction.
The situation is not new, dating back to April when the CFTC sued New York State to prevent it from using state gambling laws as a framework for enforcement through lawsuits and cease and desist letters.