Kalshi says CFTC, Michigan orders leave it in ‘impossible position’
Summary
Kalshi says it is trapped between conflicting state and federal orders after the CFTC blocked it from canceling Michigan trades that a state court had ordered unwound. A Michigan judge told Kalshi on June 29 to stop offering sports betting contracts in the state while a lawsuit proceeds, and Kalshi says it complied by reversing the trades. The CFTC then ordered Kalshi not to follow the state ruling, arguing that states cannot force a registered derivatives platform to void executed trades. The dispute underscores an unresolved fight over who regulates prediction markets: the CFTC or state regulators. Kalshi is reviewing its options, while the CFTC says it will challenge any state attempt to penalize federally registered exchanges.
