The U.S. Commodity Futures Trading Commission ordered prediction market platform Kalshi on Tuesday to proceed with honoring trades placed by Michigan residents. The directive comes despite a Michigan state court restraining order aimed at forcing cancellations of certain contracts.
The state court's 14-day order, issued approximately two weeks earlier, required Kalshi to halt offerings of sports-related event contracts and unwind some existing positions. Kalshi operates as a registered designated contract market under CFTC oversight pursuant to the Commodity Exchange Act.
The commission has pursued legal action against multiple states in efforts to defend its regulatory authority over such markets, as granted by Congress. The dispute underscores tensions between federal and state jurisdictions in the oversight of event-based trading platforms.
The state court's 14-day order, issued approximately two weeks earlier, required Kalshi to halt offerings of sports-related event contracts and unwind some existing positions. Kalshi operates as a registered designated contract market under CFTC oversight pursuant to the Commodity Exchange Act.
The commission has pursued legal action against multiple states in efforts to defend its regulatory authority over such markets, as granted by Congress. The dispute underscores tensions between federal and state jurisdictions in the oversight of event-based trading platforms.