The CFTC declared a market emergency on 11 August 2026 and ordered KalshiEX to keep offering event contracts in New York, overriding the state attorney general's bid to shut the exchange down.
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Transcript
Late Tuesday, the Commodity Futures Trading Commission did something regulators almost never do. It declared a market emergency, and ordered the prediction market Kalshi to keep operating in New York. Here is the background. On July thirty first, New York's attorney general sued Kalshi, calling it an illegal gambling operation, asking a court to shut its event contracts down nationwide, and demanding more than thirty six billion dollars. The agency's answer was not to file a brief. It reached for emergency powers, the kind normally reserved for a market that is actually breaking, and told Kalshi to keep the New York market open. New York is now the ninth state the agency has taken to court this year. Kalshi is holding two orders it cannot both obey.