NY Judge Blocks CFTC Attempt to Halt Kalshi State Enforcement Action

Judge Rakoff denied CFTC's emergency motion to stop NY AG's suit against Kalshi, citing lack of irreparable harm proof. CFTC may refile by August 7th.

Woofun AI reports that New York Judge Jed S. Rakoff rejected the Commodity Futures Trading Commission's request for an emergency temporary restraining order intended to block state enforcement against prediction platform Kalshi. The court determined the CFTC did not establish a likelihood of success or irreparable harm, though the denial was without prejudice, permitting a refiling by August 7th.

New York Attorney General Letitia James filed suit last Friday, alleging Kalshi operates an illegal unlicensed prediction business involving sports and election contracts. This dispute centers on whether federal commodity law supersedes state regulation, with the CFTC and Kalshi asserting exclusive federal jurisdiction over these derivatives.