alt Hacker NewsYes. If you take Kalshi out of it, that’s exactly how the law is supposed to work.
The State of New York does not have the power to compel NYSE to stop operating in New York either, irrespective of what laws NY passed, as that is with the SEC.
They also can’t enforce a law saying companies in New York must file 10Qs every month or something. Again, federal.
See: supremacy clause, interstate commerce. (The latter has been significantly expanded beyond its ordinary meaning for centuries; in here, the theory is that New Yorkers not being able to participate in a market ‘hurts’ other interstate market participants).
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It's kind of hard to take Kalshi out of this, since the whole premise for the Commodity Futures Trading Commission's authority here is that Kalshi is a commodity futures trading exchange, not a gambling site.
The interstate commerce clause is hilarious. It's the ultimate freebie for the feds. They can argue their case for pretty much anything they want with it.