CFTC Blocks Kalshi From Canceling Michigan Sports Trades Amid Regulatory Dispute
The U.S. Commodity Futures Trading Commission (CFTC) has ordered prediction market platform Kalshi to honor and settle pending sports-related contracts placed by Michigan users.
Temporarily blocking the company from canceling trades despite a state court order requiring certain wagers to be voided and refunded. The decision highlights the growing legal conflict between federal regulators and state authorities over who has jurisdiction over event-based prediction markets. While Michigan argues that Kalshi’s sports contracts violate state gambling laws. The CFTC maintains that federally regulated derivatives exchanges must operate under a uniform national framework. And cannot treat customers differently based on their location.
The case is expected to become a significant legal test for the future of prediction markets in the United States. With its outcome potentially shaping how sports-related event contracts are regulated at both the federal and state levels.
Clever Robot News Desk 16th July 2026
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