The Trump administration is trying to stop New York from enforcing its gambling laws against Kalshi, and yesterday said it ordered the prediction market to continue operating in the state.

The Commodity Futures Trading Commission (CFTC) announced that it exercised its emergency authority in response to a "market emergency." The CFTC said it acted "to ensure market stability" and "ordered the exchange to continue to operate in accordance with the Commodity Exchange Act’s Core Principles." The Trump administration took the action after a request from Kalshi.

The market emergency alleged by the CFTC is that New York Attorney General Letitia James sued Kalshi on July 31. James' lawsuit seeks a court order to permanently enjoin Kalshi "from operating an unlawful gambling business" in the state. The lawsuit also demands that Kalshi "make full restitution to customers who have engaged in betting" and pay financial penalties.

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Several US senators have written a letter to the Commodity Futures Trading Commission (CFTC), inquiring about the agency’s “plans to crack down on prediction markets” that offer “contracts for individuals to bet on wildfires.”

“Offering bets on destructive wildfires threatens to minimize communities’ suffering, all so the rich and powerful can profit,” wrote the group of senators, who represent Oregon, California, Nevada, Minnesota, and New Hampshire.

The document specifically cites that Polymarket hosted bets in January 2025 on the wildfires in Los Angeles, and it mentions another website that specifically accepts “simulated bets” exclusively on California wildfires.

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