Kalshi says CFTC, Michigan orders leave it in ‘impossible position’

The CFTC blocked Kalshi from unwinding Michigan trades, escalating a federal-state fight over who has the authority to regulate prediction markets.

Kalshi says CFTC, Michigan orders leave it in ‘impossible position’

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Written by

Felix Ng

staff editor

Reviewed by

Felix Ng

staff editor

Written by

Felix Ng

staff editor

Reviewed by

Felix Ng

staff editor

Kalshi says CFTC, Michigan orders leave it in ‘impossible position’

Latest News

Published

Jul 15, 2026

“We are disappointed by this decision and believe it is unfair to Kalshi,” the company’s legal counsel said on X.

Kalshi says it is being put in an “impossible position” after the US commodities regulator on Tuesday said it was blocking the prediction market platform from canceling trades in Michigan, contradicting a recent state court order.

On June 29,

Kalshi was ordered

by Ingham County Circuit Court Judge Rosemarie Aquilina to cease offering sports betting contracts to Michigan users while a lawsuit over whether Kalshi violated the state’s sports betting laws plays out. The Commodity Futures Trading Commission

ordered

Kalshi on Tuesday not to comply with the state order and continue operating.

“We are disappointed by this decision and believe it is unfair to Kalshi,” Robert DeNault, the company’s head of enforcement and legal counsel

said

in a statement on X.

“We already acted and unwound the trades, as the Michigan court order required us to do. We are being put in an impossible position, looking to follow state court orders that may contradict our federal regulatory obligations. We did not have a choice.”

Related:

OpenAI quietly adds Kalshi World Cup odds to ChatGPT: Report

The conflicting orders highlight an unresolved regulatory divide between the CFTC and nearly two dozen state regulators over which authorities have jurisdiction over prediction markets. The CFTC said Michigan was the first state to attempt to interfere with executed derivatives transactions.

“Canceling trades that have already been executed is an unprecedented step that risks a cascading effect on the entire marketplace and undermines the certainty in contracting that is a necessary component of a functioning market,” said CFTC Chair Michael Selig.

“The Commission will not allow states or state courts to bully registered entities into violating the Commodity Exchange Act and CFTC regulations.”

A Kalshi spokesperson said it was reviewing the CFTC’s order and considering its next steps,

according

to Reuters.

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