US CFTC Orders Kalshi to Keep Operating Despite NY Lawsuit Ahead of NFL Season

The U.S. Commodity Futures Trading Commission (CFTC) issued an emergency order directing prediction market operator Kalshi to continue operating despite a New York lawsuit. The regulator’s move is to defend prediction markets to continue sports event contracts just weeks before the NFL season begins.

CFTC Defends Kalshi Prediction Market amid New York Lawsuit

The CFTC exercised its emergency authority under the Commodity Exchange Act (CEA) and ordered Kalshi to continue operating to ensure market stability. This comes as the firm notified the CFTC in early August of a potential market emergency arising from New York’s lawsuit.

The federal regulator said it has exclusive jurisdiction over Kalshi and CEA requires it to ensure a uniform national market in derivatives transactions. Prediction markets will maintain normal operations even if New York wins a pending restraining order to halt offering event contracts.

CFTC Chair Michael Selig stated that New York has “no business regulating these interstate financial markets.” He added that “New York intends to make event contract derivatives waste away under its iron curtain of state gaming laws before the courts get the chance to issue final rulings.”

The regulator criticizes states’ attempts to bring enforcement actions against regulated DCMs nationwide. However, the regulator vows to protect the jurisdiction granted to it by Congress. Recently, the CFTC told prediction markets to avoid using American-style gambling odds.

New York Lawsuit Targets Sports Prediction Markets Ahead of NFL Season

New York Attorney General Letitia James filed a lawsuit against Kalshi on July 31, alleging the company operates an illegal, unlicensed gambling business.

The New York AG seeks a temporary restraining order to halt event contracts nationwide and more than $36 billion in damages and civil penalties. The CFTC also filed for a restraining order to block New York actions against registered prediction markets.

The New York AG’s action followed a July ruling that denied Kalshi’s request for a preliminary injunction blocking New York from enforcing its gambling laws. The 2nd Circuit appeals court also denied the request for temporary administrative relief.

However, the CFTC’s intervention just ahead of the NFL regular season has provided Kalshi with temporary relief to continue offering sports event contracts. Typically, the sports seasons see heightened trading volume on prediction platforms.

Here are the best crypto prediction markets to try in 2026 to predict the outcome of events across crypto markets, sports, politics, economics, pop culture, and more.