Why did the CFTC step into the Kalshi case?

The U.S. Commodity Futures Trading Commission said Kalshi's contracts fall under federal law. It also said completed trades should not be cancelled.

What does Michigan want Kalshi to do?

Michigan wants Kalshi to stop offering sports event contracts. The state also wants some completed trades cancelled.

How is this case different from other legal disputes?

This case tests whether a state can override a federally regulated prediction market. That question is still before the courts.

What does the CFTC order mean for Kalshi users?

The CFTC told Kalshi to keep processing affected contracts under its normal rules while the case continues.

Why is the Kalshi case important?

The ruling could affect how prediction markets operate across the United States. It may also define the limits of state and federal authority.

Image for illustrative purposes only. Not a real photo.

Kalshi dispute draws CFTC action in Michigan

Written by Mahathir BayenaPublished Jul 15, 2026, 5:50 AM

The CFTC told Kalshi not to cancel completed Michigan trades.
The move increases the legal fight over prediction market rules.
The regulator said keeping trades in place protects market confidence.

The U.S. Commodity Futures Trading Commission told Kalshi not to cancel completed Michigan trades despite a state court order.

Michigan had ordered Kalshi to stop offering sports event contracts and cancel some completed trades.

"The Commission will not allow states or state courts to bully registered entities into violating the Commodity Exchange Act and CFTC regulations," said CFTC Chairman Mike Selig.

The CFTC said Kalshi asked for emergency guidance on 2 July after receiving the Michigan court order.

The regulator said cancelling completed trades could weaken trust in U.S. derivatives markets, and Kalshi is not publicly listed.

Several U.S. states have challenged Kalshi's sports event contracts under their gambling laws.

The case could shape how federal regulators and states oversee prediction markets in the future.