WASHINGTON, D.C.— Benjamin Schiffrin, Director of Securities Policy for Better Markets, issued the following statement in connection with the Commodity Futures Trading Commission (CFTC) directing Kalshi to continue to operate regardless of any court orders:

“The CFTC believes that the law does not apply to it. Kalshi sued New York in an attempt to prevent the state from enforcing its gambling laws against Kalshi. But a federal district court denied Kalshi relief. And a federal appellate judge then refused to prevent New York from taking enforcement action against Kalshi while Kalshi appealed the district court’s ruling. Now that New York has sued Kalshi to prevent it from circumventing state gambling laws, the CFTC has directed Kalshi to continue to operate even if a court enjoins it from doing so.

“The CFTC says that it wants to prevent New York forcing Kalshi to ‘waste away under its iron curtain of state gaming laws before the courts get the chance to issue final rulings.’ Yet the CFTC has no right or authority to subvert the normal legal process. Kalshi has every opportunity to obtain relief from a court of law while its appeals are pending. If the courts deny relief pending appeal, however, it is not for the CFTC to substitute its judgement for the judgement of the courts. Defiance of the rule of law is what resembles the Iron Curtain.

“This is not the first time the CFTC has directed Kalshi to violate a court order. It did so after a Michigan state court ordered Kalshi to void, cancel, and refund some bets. The CFTC is now directing Kalshi to violate the orders of a federal court. Its cheerleading for prediction markets truly knows no bounds. The harm this causes is no longer limited to the derivatives markets the CFTC is supposed to oversee or the consumers state gambling laws are supposed to protect but now extends to the rule of law that the CFTC disregards itself.”

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.