On August 19, 2026, U.S. President Donald Trump is expected to take part in a White House meeting alongside executives from the prediction markets and cryptocurrency...
A federal judge in Connecticut has denied Kalshi’s emergency motion for an injunction, arguing that the Commodity Futures Trading Commission’s (CFTC) rules can’t override state gambling laws.
The decision was made by District Judge Vernon Oliver regarding Kalshi’s appeal for an emergency injunction after the operator’s preliminary injunction was denied. The judge stressed that the CFTC’s regulations can’t go against the court’s interpretation of federal law and that it doesn’t have the authority to dictate an order.
Judge Oliver explained:
“Nothing in the CEA takes away statutory interpretation from the Courts, and as an administrative agency, the CFTC lacks the authority to dictate an order that conflicts with this Court’s decision. This argument is not compelling, as it ignores a fundamental holding of the PI Order: that the sports-event contracts in dispute are not swaps subject to the CFTC’s exclusive jurisdiction.”
The court further stated that the prediction market operator’s claims of irreparable harm and speculative fears of CFTC retaliation didn’t have any factual basis. On the other hand, Judge Oliver noted that the state’s arguments of irreparable harm were sufficient, citing previous Supreme Court rulings that show how a state could suffer irreparable harm if it’s restricted from applying its laws.
Kalshi’s position urged that federal law requires it to continue offering its products even when states order the operator to stop, arguing that the court’s ruling could lead to civil and criminal liability.
