A Connecticut judge denied Kalshi's emergency injunction bid on Monday, ruling that the Commodity Futures Trading Commission's "market emergency" order — issued in New York — carries no authority over a separate state court's decision. The judge wrote explicitly that the CFTC "lacks the authority to dictate an order that conflicts with this Court's decision."
The ruling closes the gap Kalshi had attempted to exploit. After the CFTC invoked emergency powers in New York, Kalshi moved quickly to apply that federal shield in Connecticut, arguing the order should suspend state-level enforcement there too. The court rejected that theory outright.
The decision matters because it establishes that federal emergency designations do not automatically travel across state lines to pause independent judicial proceedings. Each state court, on this reading, retains jurisdiction to enforce its own orders regardless of what a federal regulator declares elsewhere.
