The Commodity Futures Trading Commission issued an emergency order requiring Kalshi to continue operating even if New York obtains a court injunction blocking the exchange. Kalshi immediately cited the document in its appeal, arguing it demonstrates an 'irreconcilable conflict' between federal and state law.
New York Attorney General Letitia James responded that the order is irrelevant to the appeal and that the CFTC cannot manufacture a federal-state conflict through its own interpretation of the Commodity Exchange Act. Separately, New York City Council opened an investigation into Polymarket, Kalshi, Coinbase and Gemini Titan over advertising, influencer partnerships and possible targeting of minors.
Court losses
In Connecticut, District Judge Vernon D. Oliver denied Kalshi's request for a preliminary injunction against state regulators. Oliver ruled that the exchange's sports event contracts do not qualify as swaps under federal law and rejected the argument for federal preemption. 'Whatever language Kalshi uses to describe them, they are wagers on sporting events,' the judge wrote. A Washington state court issued a similar ruling, ordering Kalshi to block contracts on sports, elections, politics, entertainment, culture, technology and science. The deadline for implementing GeoComply geofencing is 2 September; non-compliance carries a $120,000 daily fine.
Kalshi has already complied with geoblocking requirements in Michigan and Nevada on 12 August. Baltimore became the first municipality to sue prediction markets, with Kalshi, Robinhood, Webull and Coinbase named as defendants.
Novig introduced a 21+ age restriction on its Ludlow Exchange, the first in an industry where 18+ is standard. Fliff and Onyx Odds filed applications for registration as futures commission merchants.
