CFTC Orders Kalshi to Stay Open Amid New York Shutdown Fight

The U.S. Commodity Futures Trading Commission has invoked emergency authority to order prediction market operator Kalshi to continue operating, declaring that New York's efforts to shut down the platform constitute a market emergency. The directive, issued Tuesday, August 11, 2026, places a federal regulatory command directly against the shutdown that state officials are seeking from a court.

The order does not end New York's lawsuit but requires Kalshi to maintain its normal exchange functions under the Commodity Exchange Act. New York filed a complaint on July 31, 2026, alleging that Kalshi runs an illegal gambling operation. The state is seeking a temporary restraining order covering all event contracts, along with at least $36 billion in compensatory damages pending an accounting.

CFTC Chairman Michael Selig stated that New York has no business regulating these interstate financial markets. He argued that Congress did not intend derivatives exchanges to operate under a patchwork of state gaming laws. The CFTC used Section 8a9 of the Commodity Exchange Act, which permits emergency action when a major market disturbance prevents prices from reflecting supply and demand.