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New York’s attorney general office has asked a federal judge to disregard the Commodity Futures Trading Commission’s emergency order that told Kalshi to keep operating in the state.
In an Aug. 31 letter to U.S. District Judge Lorna Schofield in the Southern District of New York, Deputy AG Katherine Rhodes Janofsky said the order should play no role in Kalshi’s bid for a preliminary injunction. According to the filing, the CFTC’s Aug. 11 action is “irrelevant” and has “no persuasive or evidentiary value.”
New York says CFTC order does not strengthen Kalshi’s case
New York argued the emergency order only reflects the CFTC’s own view of its authority and was not the product of impartial expert judgment. The state also said multiple courts have already rejected that view.
The filing came after Kalshi asked the federal regulator for relief from state enforcement actions. The CFTC then issued what the source described as only its second emergency declaration in 46 years, directing Kalshi to continue operating in New York despite state orders and court rulings.
New York’s letter was blunt in its criticism, arguing it was unprecedented for the agency to find a market “emergency” based on people being unable to engage in what the state described as unlicensed online sports gambling or other event-contract trading.
The state also pointed to an Aug. 28 Ninth Circuit opinion, described in the source as a 3-0 decision against Kalshi, as further support for its position.
What the dispute could mean for New York players
For New Yorkers, the immediate issue is whether Kalshi can keep offering its event contracts in the state while the court fight continues. New York said consumers and the market would not be harmed if those contracts stopped, disputing claims of disruption made in support of the CFTC order.
The state also told the court that Kalshi had been on notice since at least Oct. 24, 2025, that its sports wagers were unlawful under New York law, but continued and expanded anyway.
That matters because the broader case centers on whether Kalshi’s products are protected under federal derivatives law or blocked by New York gaming law enforcement.
What to watch next
Judge Schofield’s response to New York’s request was not stated in the source, and the status of Kalshi’s underlying preliminary injunction motion was also not provided. For now, the key question is whether the federal court gives any weight to the CFTC’s emergency order as the New York dispute moves forward.
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Source: As reported by sbcamericas.com.
