Michigan Court and CFTC Issue Conflicting Orders on Kalshi Sports Contracts
A Michigan court ordered Kalshi to cancel and refund sports contracts for state residents, while the CFTC prohibited cancellation, leaving the platform in an impossible position.
Prediction market platform Kalshi faces a regulatory contradiction after a Michigan court demanded the cancellation of sports contracts for state residents and a full refund of funds. The state court's order directly clashes with a directive from the Commodity Futures Trading Commission (CFTC), which prohibited any cancellation and insisted on standard settlement procedures.
The CFTC argues that Michigan cannot interfere with the operations of a federally regulated exchange. Kalshi stated that the conflicting orders place it in an impossible position, as compliance with one authority would violate the other. The situation highlights ongoing tensions between state and federal oversight of financial platforms.
Source: ForkLog