CFTC Orders Kalshi to Honor Michigan Trades as Regulatory Clash Escalates

According to The Block, the Commodity Futures Trading Commission ordered Kalshi on Tuesday to honor trades involving Michigan residents, directly contradicting a state court order issued two weeks prior that demanded the cancellation of sports-related event contracts.

The move marks an escalation in a broader regulatory conflict over prediction markets jurisdiction. CFTC Chairman Michael Selig stated that "a state cannot force a Designated Contract Market to violate its obligations" and emphasized that canceling already-executed trades risks undermining market certainty. Michigan's attorney general has argued that the platform's offerings constitute unlicensed gambling.