CFTC Orders Kalshi to Fulfill Michigan Trades; Federal-State Regulatory Authority Dispute Continues to Escalate

TechFlow news, July 15: According to The Block, the U.S. Commodity Futures Trading Commission (CFTC) officially ordered prediction market platform Kalshi on July 14 to fulfill all transactions involving Michigan residents, directly countering the 14-day injunction previously issued by the Michigan court—which required Kalshi to stop offering sports-related event contracts and revoke some executed transactions.

CFTC Chairman Michael Selig stated that state governments have no authority to force registered Designated Contract Markets (DCM) to violate federal obligations, and forcibly revoking executed transactions will have a ripple effect on the entire market, seriously undermining market contractual certainty. Michigan Attorney General Dana Nessel, however, insisted that Kalshi is essentially an unauthorized online gambling platform, and state gambling laws apply to it as well.