CFTC Blocks Kalshi From Canceling Michigan Trades, Defying State Court Order
Summary
The CFTC has ordered Kalshi to ignore a Michigan court ruling that required the platform to cancel sports betting contracts for state users. Kalshi says it already unwound the trades and now faces conflicting federal and state directives. CFTC Chair Selig called the state's interference unprecedented, warning it could destabilize derivatives markets. This escalates a multi-front regulatory battle—Kalshi is already suing Minnesota over a similar ban and was blocked in Spain in May. The standoff raises existential jurisdictional questions for prediction markets, with nearly two dozen states challenging CFTC authority. Kalshi is reviewing the order and weighing next steps.
This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Cointelegraph.