CFTC Invokes Emergency Authority to Keep KalshiEX Operating Amid New York AG Lawsuit

The CFTC exercised its emergency authority under the Commodity Exchange Act to order KalshiEX, LLC to continue operating in accordance with the Act's Core Principles, after KalshiEX notified the Commission of a market emergency triggered by a July 31, 2026 lawsuit from the New York Attorney General seeking to bar KalshiEX from offering event contracts nationwide and more than $36 billion in damages. Chairman Michael Selig said Congress did not intend derivatives exchanges to be regulated under a 'patchwork of state gaming laws' and framed the action as necessary to preserve uniform national derivatives market oversight against state-level enforcement.

• Invokes emergency authority to order KalshiEX to keep operating under the Commodity Exchange Act's Core Principles
• Responds to a July 31, 2026 New York Attorney General lawsuit seeking a nationwide ban on KalshiEX event contracts and over $36 billion in damages
• Asserts federal preemption of state gaming law claims against CFTC-registered derivatives exchanges
• Escalates the ongoing federal-state jurisdictional conflict over prediction market event contracts