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

Post by SpicyLemonZest » Wed, Aug 12, 2026, 1:19 AM UTC

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.

Post by semiquaver » Wed, Aug 12, 2026, 1:20 AM UTC

akerl_ wrote: post #51

semiquaver wrote: post #47

Earlier quoted context omitted.

What? It’s in the first paragraph. > August 11, 2026 > > WASHINGTON — The Commodity Futures Trading Commission today exercised its emergency authority in response to KalshiEX, LLC’s notification of a market emergency and ordered the exchange to continue to operate in accordance with the Commodity Exchange Act’s Core Principles. Further, the operative document that this press release is about is titled “ORDER DIRECTIN…

The "order" there is effectively a reset button to the TRO. Its function is to say "you can ignore the TRO and continue business as usual". It doesn't force Kalshi to continue operating if they had their own reasons for pausing operations.

Post by DannyBee » Wed, Aug 12, 2026, 1:20 AM UTC

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…

Post by SpicyLemonZest » Wed, Aug 12, 2026, 1:21 AM UTC

akerl_ wrote: post #46

tracerbulletx wrote: post #42

Earlier quoted context omitted.

That is not true? The order was to stop them from operating in the state.

Do you have a source for that? From the release: > In the lawsuit, filed on July 31, New York seeks a temporary restraining order prohibiting KalshiEX, LLC from offering all event contracts nationwide and more than $36 billion in damages.

Post by DannyBee » Wed, Aug 12, 2026, 1:22 AM UTC

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.