CFTC declares market emergency, orders Kalshi to continue to operate in New York

The Commodity Futures Trading Commission (CFTC) invoked emergency authority to order Kalshi to continue operating after New York's Attorney General filed a lawsuit seeking to ban the exchange's event contracts and demanding over $36 billion in damages. The CFTC asserted that derivatives exchanges should be regulated at the federal level rather than under individual state gaming laws, and the agency is defending its jurisdiction against similar enforcement actions by multiple states.