US derivatives regulator blocks Kalshi from canceling Michigan trades despite court order
The regulator said the state cannot force the platform to unwind executed trades, citing federal law and a broader fight over sports-event contracts.
- On Tuesday, the Commodity Futures Trading Commission blocked Kalshi from canceling sports trades in Michigan, overriding a state court order that demanded the company cease operations and unwind existing contracts.
- Last month, Ingham County Circuit Court Judge Rosemarie Aquilina barred Kalshi from offering sports event contracts to Michigan residents after Michigan Attorney General Dana Nessel argued the derivatives violated state gaming laws.
- CFTC Chair Michael Selig stated the agency will not allow states to "bully registered entities into violating the Commodity Exchange Act," warning that canceling executed trades risks "a cascading effect on the entire marketplace."
- Robert DeNault, Kalshi's head of enforcement and legal counsel, said the company was "being put in an impossible position" after already unwinding trades to comply with the Michigan court order.
- Beyond Michigan, legal challenges expand as Massachusetts secured a preliminary injunction while Judge Analisa Torres recently denied Kalshi's request to dismiss New York's lawsuit, signaling ongoing state-level litigation.
33 Articles
33 Articles
CFTC Orders Kalshi to Honor Trades a Michigan Court Told It to Cancel, Escalating a State Jurisdiction Fight
The Commodity Futures Trading Commission inserted itself between Michigan’s courts and prediction market firm Kalshi on Tuesday, ordering the company not to comply with a state court demand that it cancel previously executed customer trades. The dispute traces to June, when a Michigan county court ordered Kalshi to stop offering online sports contracts in the state, a halt sought by Attorney General Dana Nessel, who argued the products amount to…
CFTC blocks Kalshi from unwinding Michigan trades after court order
CFTC has ordered Kalshi to keep operating in Michigan despite the platform already unwinding sports event trades to comply with a state court order, deepening the dispute over who regulates prediction markets in the U.S. According to a July 14…
The Economic Times
US derivatives regulator blocks Kalshi from canceling Michigan trades despite court order
The U.S. derivatives regulator blocked Kalshi from cancelling trades in Michigan despite a state court order banning its sports-related contracts. The move highlights a growing clash between federal authorities backing prediction markets and states enforcing gambling laws, raising broader questions about jurisdiction, regulation, and the future of event-based trading platforms.
CFTC Blocks Kalshi From Cancelling Michigan Sports Trades Ordered Voided
The Commodity Futures Trading Commission has stopped Kalshi from liquidating sports event contracts that a Michigan court ordered cancelled and refunded. The intervention leaves Michigan’s restriction on new sports trades intact while opening a direct federal-state confrontation over who controls transactions already executed on a regulated derivatives exchange. Federal order protects completed trades, not new […]
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