The Commodity Futures Trading Commission issued an emergency order directing designated contract market KalshiEX to continue operating under its normal practices and the Commodity Exchange Act’s Core Principles. The order responds to New York’s lawsuit and request for a temporary restraining order that the CFTC found could shut down the exchange, force liquidation of open positions and disrupt event contract markets. New York alleges that KalshiEX violates state gambling laws and seeks to prohibit it from offering event contracts within or from New York or to New York residents, as well as at least USD 36 billion in compensatory damages. The CFTC found that the threatened shutdown constitutes a major market disturbance that could distort prices, redirect activity to other exchanges and create volatility across derivatives and related markets. It also maintained that event contracts traded on CFTC-regulated designated contract markets fall within its exclusive federal jurisdiction.
Commodity Futures Trading Commission2026-08-11
Commodity Futures Trading Commission invokes emergency authority to direct KalshiEX to continue operating
The Commodity Futures Trading Commission invoked emergency authority to direct KalshiEX to continue operating under its normal practices and statutory Core Principles. It found that New York’s lawsuit and proposed restrictions could shut down the exchange, force liquidation of positions and disrupt event contract and broader derivatives markets.