ME News reports that on July 15 (UTC+8), the U.S. Commodity Futures Trading Commission (CFTC) intervened in a dispute between a Michigan state court and the prediction market company Kalshi, issuing an order to prohibit Kalshi from complying with the court’s request to cancel prior customer trades. The CFTC Chair asserted that the CFTC holds exclusive and unshakable regulatory authority over Kalshi’s trading activities and regulates Kalshi as a Designated Contract Market (DCM). The CFTC stated, “Canceling executed trades is an unprecedented action that could trigger ripple effects across the entire market and undermine contract certainty, which is a necessary component for the proper functioning of markets.” In June, a Michigan county circuit court, at the request of the state’s Attorney General, ordered Kalshi to cease its online sports betting operations in the state. On July 2, Kalshi submitted an emergency request to the CFTC, seeking to comply with the court order by voiding and refunding certain transactions by Michigan users. (Source: Foresight News)
CFTC Blocks Kalshi from Canceling Client Trades Amid Michigan Court Dispute
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Summary
CFT (Countering the Financing of Terrorism) concerns have not overshadowed the latest CFTC action, as the agency prevented Kalshi from canceling client trades amid a Michigan court dispute. The CFTC asserted exclusive regulatory authority over Kalshi, which operates as a designated contract market. The agency warned that reversing trades could harm liquidity and crypto markets by undermining contract certainty. In June, a Michigan court ordered Kalshi to cease online sports betting in the state. On July 2, Kalshi requested the CFTC’s assistance in reversing certain transactions involving Michigan users.
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