The CFTC invoked emergency authority to force Kalshi to continue operating in New York, defying a lawsuit by Attorney General Letitia James who sought to block the prediction market’s sports contracts. According to The Information, Kalshi has reached a $4 billion annualized revenue run rate, double its level from two months ago, and is raising funds at a $40 billion valuation. CFTC Chairman Mike Selig, a crypto-friendly Trump appointee, accused New York of trying to make these contracts « waste away under its iron curtain of state gaming laws, » arguing these are interstate financial markets that the state has no business regulating. New York argues that these sports prediction markets constitute gambling that evades state licensing and taxes, revenue that funds schools and problem-gambling programs. This marks the CFTC’s third intervention for Kalshi, which faces unresolved legal challenges.
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