CFTC Blocks Michigan Court Order, Requires Kalshi to Execute Resident Trades

According to The Block, the CFTC on Tuesday ordered Kalshi to execute trades involving Michigan residents, overruling a state court directive to cancel contracts and halt sports betting products. CFTC Chairman Michael Selig stated that "states cannot force designated contract markets to violate their obligations, and federal law prohibits DCMs from discriminating against residents of any state," adding that canceling executed trades would be an "unprecedented action with potential cascading effects across the market."

Michigan's earlier 14-day restriction order claimed gambling laws protect state residents from unlicensed predatory operations. The CFTC has filed suit against nine states including Arizona, Connecticut, Illinois, and Kentucky to defend its congressionally granted jurisdiction.