Kalshi tells Fourth Circuit to wait on new CFTC rule

Kalshi says the CFTC’s revised rule 40.11 should become final within two months, & argues that undercuts Maryland’s case, according to a letter filed with the court.

The hit

Kalshi has told the US Court of Appeals for the Fourth Circuit that a new CFTC regulation could affect Maryland’s push to block its event contracts. In a letter filed 25 September, Kalshi’s lawyer said the CFTC expects its revised rule 40.11 to become final within two months, & that the new version would authorise many of the contracts Maryland wants banned, according to the court filing.

Why it matters

Maryland has repeatedly asserted that rule 40.11 bans gaming-linked event contracts outright, according to the filing. Kalshi says that reading is incorrect, citing its reply brief, & argues that regardless, the incoming rule would not impose a categorical bar & would let exchanges list many of the contracts at issue. Kalshi says it should win on its existing briefing, but adds that if the court finds rule 40.11 relevant, it should wait for the new regulation before ruling.

The record

Filing date	25 September 2026, letter to the Fourth Circuit (Kalshi counsel William Havemann)
CFTC timeline	Revised rule 40.11 expected final within two months (CFTC filing, CFTC v. Johnson, 9th Cir.)
Federal Register entry	Prediction Markets; Public Interest Determinations, 91 Fed. Reg. 35,806 (12 June 2026)
Case number	KalshiEX LLC v. John A. Martin, et al., No. 25-1892 (4th Cir.)

What happens next

Watch for whether the Fourth Circuit waits for the CFTC’s final rule before ruling on Kalshi’s injunction bid.

Sources: Notice re: — Kalshiex LLC v. John Martin (4th Cir., 25-1892)

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