According to CoinMeta, Wu said that CFTC activated emergency powers, requiring the regulated futures exchange Kalshiex to continue operating in accordance with the core principles of the Commodity Exchange Act in order to address the market emergency reported by that exchange. Previously, New York Attorney General Letitia James filed a lawsuit against Kalshiex on July 31, requesting the court to ban it across the United States and claiming over $36 billion in damages. CFTC stated that state governments' law enforcement actions against federally regulated derivatives exchanges could undermine the national unified derivatives market regulatory system. To maintain federal jurisdiction, CFTC has previously sued several states.