I've got no love for Kalshi, but "orders Kalshi to continue operate in New York" doesn't seem to be present anywhere in the actual release.

The article presents the sequence of events as:

1. The State of NY files a lawsuit against Kalshi under the theory that it can be regulated by state gambling laws.

2. The State of NY files for a temporary restraining order requiring Kalshi to halt trading nationally, not just in NY.

3. Kalshi reaches out to the CFTC to claim that NY doesn't have the authority to regulate interstate commerce.

4. The CFTC agrees and uses their authority to override the TRO.

That seems pretty aligned with how interstate commerce is regulated and managed in the US.

Ah yes, "derivatives" which are "not intended to fall under gaming laws" such as... *checks Kalshi website* 58 million dollars riding on which team is the 2027 NFL champion.

Oh yeah, totally a financial derivative there, not related to gambling at all. *sigh*

I actually am not opinionated on it other than all kinds of gambling are basically the same -- and that includes a lot of the ways stock market is used in practice.

I do admit gambling addiction is a real thing and that this new super convenient and easy and legal option incrementally brings more people into that world of pain. But I also think it's stupid to ban gambling like they did with alcohol in the last century. It'll just put more control in the hands of the mob.

The mob. There's an organization that I bet is also eagerly lining the pockets of these "kill Kalshi" regulators.

the “states rights” crowd has always used laws passed by Congress, which the CEA has been. other examples such as a Supreme Court overruling itself made a national regulation fall back to the states solely because Congress has not and has never passed a law on the topic, there is insufficient consensus on proposed laws so those topics will remain at the states

in this case, the actual argument is that the case should be heard by the courts at all, and NY wanted to halt operations WHILE it was heard by the courts. CFTC overruled the pre-verdict halting

and finally, the courts of course will likely not result in anything, as the Supremacy Clause of the Constitution is clear that federal law is supreme when there is a conflict, and the CFTC chooses to leverage that

federal government can always choose to ignore a state law, as it does in some markets

> In the lawsuit, filed on July 31, New York seeks a temporary restraining order prohibiting KalshiEX, LLC from offering all event contracts nationwide and more than $36 billion in damages.

This seems naturally the territory of the CFTC. They have exclusive right to regulate futures and derivatives contracts, which Congress handed them. Also, it seems straightforwardly anti-commerce-clause to allow NY to prohibit Kalshi from offering these contracts nationwide.