The U.S. Commodity Futures Trading Commission (CFTC) announced that it has used its "emergency powers" to order prediction market operator Kalshi to continue operating in New York State. This follows a lawsuit filed against Kalshi by New York Attorney General Letitia James in late July, alleging that it violated the state's gambling laws by offering sports-related prediction markets and demanding the platform's closure. CFTC Chairman Mike Selig reiterated that Congress did not intend for derivatives exchanges to be regulated under a patchwork of state gambling laws, emphasizing that these are financial exchanges operating across states, and New York State has no authority to regulate these interstate financial markets. This move marks the latest conflict between federal commodity regulators and state regulators over jurisdiction in prediction markets.