CFTC Argues Jurisdictional Exclusivity in New York Hearing
Counsel representing the United States Commodity Futures Trading Commission toed the corporate line throughout a listening to on the US District Court for the Southern District of New York on Monday. The presiding choose was skeptical about whether or not that argument is adequate to grant the fee’s request to dam New York authorities from transferring ahead with their efforts to implement the state’s playing legal guidelines in opposition to prediction market alternate operators, although.
On the opposite aspect of the US, Arizona officers are attempting to capitalize on the second earlier than the Ninth Circuit Court of Appeals. There has additionally been a change in Underdog’s lawsuit in opposition to Washington Attorney General Nick Brown.
CFTC arguments meet skepticism from federal choose
The US Commodity Futures Trading Commission (CFTC) made its case for US District Judge Lorna G. Schofield to grant its request for a preliminary injunction in opposition to New York officers on Sept. 14, 2026. According to Alyssa Aquino of Law.com, Schofield’s questioning signaled that it wasn’t a slam dunk argument.
Counsel for the CFTC framed its pleas round federal regulation giving the company unique jurisdiction over occasion contract buying and selling. However, Aquino experiences that Schofield responded by asking counsel why an injunction is warranted when quite a few courts throughout the US have discovered fault with that very premise.
The CFTC sued New York in April and the requested injunction can be in impact whereas that case is ongoing. The injunction would have a number of impacts if granted.
New York Attorney General Letitia James has sued Kalshi, arguing that the alternate is violating the state’s legal guidelines by providing occasion contract buying and selling on cultural, political, and sports activities occasions. Additionally, the New York State Gaming Commission has issued cease-and-desist orders to different alternate operators.
Judges with the Southern District of New York (SDNY) apart from Schofield have already denied similar requests, together with a movement for a brief restraining order the CFTC made after James filed her lawsuit. Whether Schofield will grant the injunction or not isn’t the one pending outcome in a lawsuit between the CFTC and state authorities figures.
Arizona gaming regulator asks for Ninth Circuit to intervene in CFTC dispute
Arizona officers are presently enjoined in opposition to pursuing civil and legal actions in opposition to Kalshi and different prediction market alternate operators, however the Director of the Arizona Department of Gaming is making an attempt to alter that state of affairs. Director Jackie Johnson has asked the Ninth Circuit to vacate the order putting in the injunction based mostly on a current resolution of a three-judge panel from that court docket.
That panel issued an opinion in Kalshi v. Assad that sports activities occasion contract buying and selling on the platform are legally tantamount to sports activities wagering and Nevada authorities are inside their rights to implement that state’s playing legal guidelines in opposition to Kalshi. As Arizona can be in the Ninth Circuit’s jurisdiction, Johnson argues that the company she leads ought to have the identical leeway in its state.
Coinbase and Crypto.com have each appealed the Ninth Circuit panel’s opinion in Kalshi v. Assad to the US Supreme Court. Kalshi has requested the Ninth Circuit for a rehearing with the total court docket.
Also of observe on the west coast over the previous few days is a change on the bench presiding over Underdog v. Brown in the District Court for the Western District of Washington. Judge Robert Lasnik has recused himself and Judge Thomas Zilly will now preside over that case.
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