A New York judge dismissed the CFTC's motion to block enforcement actions against Kalshi, as the dispute over federal and state jurisdiction continues

U.S. District Judge Jed S. Rakoff in New York has denied the emergency temporary restraining order application filed by the Commodity Futures Trading Commission (CFTC), which aimed to stop the state of New York from advancing its enforcement case against the prediction platform Kalshi. The judge found that the CFTC failed to demonstrate a likelihood of success on the merits of its case and did not prove the existence of irreparable harm. However, the denial was made "without prejudice," allowing the CFTC to refile the relevant motion by August 7.

New York Attorney General Letitia James filed a lawsuit against Kalshi last Friday, accusing it of operating an illegal unlicensed prediction business by offering contracts on events such as sports and elections. The state of New York had issued a cease-and-desist order to Kalshi as early as October 2025. The core dispute in this case revolves around whether federal commodity law takes precedence over state law—state authorities believe that event contracts are predictions subject to state law, while the CFTC and Kalshi argue that they are derivatives under the exclusive jurisdiction of the CFTC.