The regulator said the prediction-markets company must continue operating under federal jurisdiction. This came after a lawsuit filed by New York Attorney General Letitia James. She demanded that Kalshi stop operating in the state and pay more than $36 billion in penalties. In addition, FlightAware has sued the company over offering bets on flight disruptions. It argues that prediction markets encourage this behavior, threatening aviation safety. FlightAware is seeking a preliminary and permanent injunction against bets based on flight tracking.