tl;dr: The CFTC invoked emergency authority to order KalshiEX to keep operating after NY AG Letitia James sued to block its event contracts nationwide and seek $36B in damages. Chairman Michael Selig argued state gaming laws can't regulate interstate derivatives markets, which fall under CFTC jurisdiction. The agency has now sued nine states (including NY, Illinois, and Connecticut) and filed amicus briefs in multiple courts to defend its authority over event contract exchanges.