CFTC Emergency Order Requires Kalshi to Continue Operations, Citing Bitcoin Position Liquidation Risk
2026-08-12 19:42
Odaily News: On August 11, the U.S. Commodity Futures Trading Commission (CFTC) required prediction market platform Kalshi to continue operating its exchange, in accordance with normal business practices and the core principles of the Commodity Exchange Act. The CFTC previously determined that New York State's attempt to block the platform's operations constituted a market emergency.
The CFTC stated that forcibly liquidating a bitcoin price position set to expire at the end of 2026 could trigger traders to simultaneously unwind their bitcoin and other asset positions, exposing arbitrageurs holding opposing positions to one-sided risk. The order also cited contracts such as federal funds rates, Strait of Hormuz traffic, and the timing of a recession.
A ruling signed on August 7 and filed on August 10 by Judge Vernon D. Oliver of the U.S. District Court for the District of Connecticut determined that Kalshi's sports contracts are not swaps; even if they were swaps, federal law would not preempt Connecticut's gambling regulations. (Bitcoin.com News)
The CFTC stated that forcibly liquidating a bitcoin price position set to expire at the end of 2026 could trigger traders to simultaneously unwind their bitcoin and other asset positions, exposing arbitrageurs holding opposing positions to one-sided risk. The order also cited contracts such as federal funds rates, Strait of Hormuz traffic, and the timing of a recession.
A ruling signed on August 7 and filed on August 10 by Judge Vernon D. Oliver of the U.S. District Court for the District of Connecticut determined that Kalshi's sports contracts are not swaps; even if they were swaps, federal law would not preempt Connecticut's gambling regulations. (Bitcoin.com News)
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