CFTC orders Kalshi to continue offering prediction markets in New York after state lawsuit

The CFTC has declared a market emergency and ordered Kalshi to continue offering prediction markets in New York. This directive comes despite an ongoing state lawsuit alleging that the platform is engaging in illegal gambling. The outcome of this legal battle could redefine the balance of authority between federal and state regulators regarding prediction markets, potentially impacting regulatory frameworks and market operations across the entire United States as the conflict over jurisdiction continues to unfold.