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CFTC blocks Kalshi from canceling Michigan prediction market trades
The regulator said Michigan cannot force Kalshi to unwind already executed transactions, warning of knock-on effects across the marketplace.
The U.S. Commodity Futures Trading Commission moved to stop Kalshi from canceling prediction market trades that Michigan courts ordered the firm to reverse, arguing the state lacks authority to interfere with already executed contracts, CoinDesk reported.
CoinDesk said the CFTC issued an order directing Kalshi not to comply with a Michigan demand to cancel prior customer transactions. The dispute ties back to Michigan efforts to halt sports trades the state attorney general described as illegal gambling.
In a statement, CFTC Chairman Mike Selig said the commission would not allow states or state courts to pressure registered entities into violating the Commodity Exchange Act and CFTC rules. The agency warned that canceling trades after execution could trigger cascading effects and undermine contracting certainty across the broader market.
CoinDesk added that a Michigan court order stemmed from a June request by the state attorney general to stop Kalshi from offering online sports wagers in the state, marking the first time a state attempted to directly intervene in transaction activity, according to the report.