Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

CFTC declares market emergency, orders Kalshi to continue to operate in New York

cftc.gov

Post reply on HN
Print view View original

31–40 of 226 posts

Re: CFTC declares market emergency, orders Kalshi to continue to operate in New York

#31

Post by akerl_ »

Avicebron wrote: post #22
akerl_ wrote: post #15

EDIT: see DannyBee's comment below ( https://news.ycombinator.com/item?id=49266746 ). It does look like the CFTC has extrapolated the "nationwide" out of either some novel interpretation of the filing or just entirely fabricated it as their justification for their action. I've got no love for Kalshi, but "orders Kalshi to continue operate in New York" doesn't seem to be present anywhere in the actual release. The art…

I think the question is whether or not this is damaging to the case that the Kalshi and others could be regulated state by state..

I (unfortunately) think that the NY AG screwed up our opportunity to press that question by aiming nationally. The CFTC got to skip that and just shut down the national TRO.

I'd love to see another state push for a state-specific restriction and see how that plays out.

Re: CFTC declares market emergency, orders Kalshi to continue to operate in New York

#32

Post by akerl_ »

aliasxneo wrote: post #30
akerl_ wrote: post #15

EDIT: see DannyBee's comment below ( https://news.ycombinator.com/item?id=49266746 ). It does look like the CFTC has extrapolated the "nationwide" out of either some novel interpretation of the filing or just entirely fabricated it as their justification for their action. I've got no love for Kalshi, but "orders Kalshi to continue operate in New York" doesn't seem to be present anywhere in the actual release. The art…

It seems that New York is asking the court for a temporary restraining order that would prohibit Kalshi from offering all event contracts nationwide. I also have zero love for Kalshi, but I can see why such a request would be concerning, regardless of whether I think Kalshi is a degenerate trash heap.

Yea; interstate commerce being the domain of the federal government is one of the more tested legal concepts we have here.

Re: CFTC declares market emergency, orders Kalshi to continue to operate in New York

#33

Post by brink »

quink wrote: post #18

Just listen to the overwhelming silence from the “states’ rights” crowd.

This has little to do with NY governing NY. NY was attempting to govern Kalshi in other states, which it doesn't have the authority to do.

Re: CFTC declares market emergency, orders Kalshi to continue to operate in New York

#34

Post by roughly »

mavbo wrote: post #11

Friends in high places are worth their weight in gold. Anyone want to bet on how much they weigh?

I mean, officially 225, but does anyone believe that?

(Which is a bit over $15M at today’s spot prices, by the by)

Re: CFTC declares market emergency, orders Kalshi to continue to operate in New York

#35

Post by skillina »

pdonis wrote: post #10
pamcake wrote: post #2

So the CFTC frames Kalshi as a financial derivatives exchange for the financial instrument category of event contracts, dismissing NYs characterization of it as a gambling/betting platform. Interesting.

What exactly is the difference between a financial derivatives exchange and a gambling platform? Both involve placing bets on uncertain future outcomes.

Traditional derivatives can be used to trade the risk that would already exist with or without the existence of the derivatives market. Prediction markets create risk out of thin air.

Re: CFTC declares market emergency, orders Kalshi to continue to operate in New York

#36

Post by akerl_ »

denkmoon wrote: post #7

An order to _continue_ operation? Has that ever happened before?

It's not an order to Kalshi to continue operations. They overrode the TRO from the state court. The target of the order is the state court / executive, essentially saying "You cannot halt Kalshi's operations via the TRO".

Re: CFTC declares market emergency, orders Kalshi to continue to operate in New York

#38

Post by asddubs »

xp84 wrote: post #28

It was never more virtuous to be options-trading GME shares on Robinhood than gambling at the dog track or betting on basketball games. The only reason some regulators are going after Kalshi or Polymarket is that the casino owners are lining these particular politicians' pockets more than the futures trading companies are. I actually am not opinionated on it other than all kinds of gambling are basically the same --…

I think you are right that it's all gambling. Kalshi seems more predatory in how it targets people. Perhaps advertising gambling in any way should be outlawed.

Re: CFTC declares market emergency, orders Kalshi to continue to operate in New York

#39

Post by [deleted] »

akerl_ wrote: post #31
Avicebron wrote: post #22

Earlier quoted context omitted.

I think the question is whether or not this is damaging to the case that the Kalshi and others could be regulated state by state..

I (unfortunately) think that the NY AG screwed up our opportunity to press that question by aiming nationally. The CFTC got to skip that and just shut down the national TRO. I'd love to see another state push for a state-specific restriction and see how that plays out.

[deleted]

Re: CFTC declares market emergency, orders Kalshi to continue to operate in New York

#40

Post by amazingman »

pdonis wrote: post #10
pamcake wrote: post #2

So the CFTC frames Kalshi as a financial derivatives exchange for the financial instrument category of event contracts, dismissing NYs characterization of it as a gambling/betting platform. Interesting.

What exactly is the difference between a financial derivatives exchange and a gambling platform? Both involve placing bets on uncertain future outcomes.

Regulations, skill, and access.
Post reply on HN