Kalshi will keep operating after the U.S. Commodity Futures Trading Commission used its emergency authority to direct KalshiEX to continue operating in line with the Commodity Exchange Act's core principles. The move came after Kalshi notified the agency of a market emergency following New York Attorney General Letitia James's July 31 lawsuit, which seeks a restraining order to stop the platform from offering event contracts anywhere in the country and more than $36 billion in damages. The CFTC cast the case as part of a broader jurisdictional fight over whether event contracts traded on a federally regulated exchange are interstate financial products or gambling subject to state law. Chairman Michael Selig said New York was trying to force event contract derivatives to "waste away under its iron curtain of state gaming laws" before courts issue final rulings, and argued that matching bids and offers across states and clearing them centrally makes Kalshi an interstate financial venue. The agency says it has now sued nine states over attempts to police event contracts and has also filed amicus briefs in the Sixth and Ninth Circuits and before the Supreme Judicial Court of Massachusetts. New York's petition describes Kalshi as an unlicensed gambling business across eight counts and seeks three times its gains plus $100,000 for every sports wagering offer. It also cites Kalshi figures that put the company's valuation at $22 billion and annualized trading volume at $178 billion. The legal fight comes after mixed court results for Kalshi, including losses in the Southern District of New York in July, while the CFTC and some federal courts have continued pressing the case for exclusive federal oversight of designated contract markets.