New York Judge Denies CFTC’s Motion to Block Enforcement Against Kalshi

Huoxing Finance reports that on August 4, U.S. District Judge Jed S. Rakoff denied the Commodity Futures Trading Commission’s (CFTC) application for an emergency temporary restraining order aimed at halting New York State’s enforcement action against the prediction platform Kalshi. The judge found that the CFTC failed to demonstrate a likelihood of success on the merits of its case or the risk of irreparable harm. However, the denial was without prejudice, allowing the CFTC to refile its motion by August 7. Last Friday, New York Attorney General Letitia James sued Kalshi, alleging that it operated an illegal, unlicensed prediction business by offering contracts on events such as sports and elections; New York State had issued a cease-and-desist order to Kalshi as early as October 2025. The core dispute centers on whether federal commodity law preempts state law—state authorities argue that event contracts fall under state-regulated predictions, while the CFTC and Kalshi contend they are derivatives under the CFTC’s exclusive jurisdiction.