NY judge denies CFTC motion to halt enforcement action against Kalshi
The ruling leaves New York’s case against Kalshi in place while allowing the CFTC to renew its request before Judge Victor Marrero.
A recent ruling permits the CFTC to proceed with its request for a restraining order against Kalshi, despite New York's ongoing case. Judge Jed S. Rakoff dismissed the CFTC's emergency motion for a temporary restraining order without prejudice, determining that the CFTC had not demonstrated a high probability of success or the risk of irreparable harm.
The CFTC can resubmit the motion before Judge Victor Marrero on Friday, August 7. New York Attorney General Letitia James initiated legal proceedings against Kalshi on Friday, claiming the company operates an unlawful, unlicensed gambling enterprise by providing contracts associated with sports, elections, and other events. The New York State Gaming Commission previously issued Kalshi a cease-and-desist order in October 2025.
This development highlights an ongoing legal battle regarding whether federal commodities law supersedes state gambling enforcement over event contracts traded on CFTC-regulated exchanges. State authorities argue that these contracts constitute wagers subject to state gambling laws, whereas the CFTC and Kalshi assert they are derivatives falling under the CFTC's exclusive jurisdiction.
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