CFTC AND NEW YORK: FORECASTING MARKET EMERGENCIES OR REDRAWING THE FEDERATION-STATE ENCRYPTED BORDERS

For the first time in its history, on 11 August, the CTC used emergency powers to maintain the operations of Kalshi, following a $36 billion lawsuit filed by the State of New York claiming that the forecast contract was illegal gambling. The incident triggered a conflict between the Federal Derivatives Act and state laws, which could redraw the regulatory boundaries of the encrypted market。