The U.S. Second Circuit Court of Appeals denied an emergency stay motion filed by Kalshi, Coinbase, and the Commodity Futures Trading Commission (CFTC), clearing the way for New York and Connecticut to enforce their state gambling laws against prediction market products. The three-judge panel ruled on November 3 that the appellants failed to demonstrate sufficient justification for a stay pending appeal, with specific reasoning yet to be published. Lower federal courts in both states had previously rejected similar injunction requests in July and August, determining that the Commodity Exchange Act (CEA) does not preempt state gambling statutes. Litigation between New York and Kalshi remains ongoing, with the state seeking penalties exceeding $36 billion.