According to The Block, on July 14, the U.S. Commodity Futures Trading Commission (CFTC) issued a formal order requiring the prediction market platform Kalshi to fulfill all trades involving Michigan residents, directly countering a 14-day injunction previously issued by a Michigan court, which had demanded that Kalshi cease offering contracts on sports-related events and rescind certain executed trades. CFTC Chair Michael Selig stated that state authorities have no power to compel a registered Designated Contract Market (DCM) to violate its federal obligations, and forcing the rescission of executed trades would create ripple effects across the market, severely undermining contractual certainty. Michigan Attorney General Dana Nessel, however, maintained that Kalshi is essentially an unlicensed online gambling platform and is therefore subject to the state’s gambling laws.
CFTC Orders Kalshi to Honor Michigan Trades Amid Federal-State Regulatory Dispute
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Summary
Citing federal authority, the CFTC ordered Kalshi to honor all Michigan trades, countering a state court’s 14-day injunction that blocked sports-related contracts and reversed certain trades. CFTC Chair Michael Selig warned that state interference could undermine market certainty and violate federal regulatory policy. Michigan Attorney General Dana Nessel contends that Kalshi operates as an unlicensed gambling platform, subject to state regulatory enforcement. The dispute underscores tensions between federal and state oversight in the evolving crypto and prediction markets landscape.
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