CFTC Blocks Kalshi From Canceling Trades Under Michigan Court Order

The U.S. Commodity Futures Trading Commission has issued an order preventing prediction market platform Kalshi from complying with a Michigan court demand to cancel certain customer trades, deepening a legal fight between federal regulators and state authorities.

CFTC Asserts Exclusive Authority

CFTC Chairman Mike Selig said the commission will not let states or state courts pressure registered entities into violating federal commodities law, framing the move as a defense of the agency’s exclusive oversight of Kalshi as a designated contract market. The CFTC has already sued several states attempting to restrict or penalize event contract trading, but noted Michigan marked the first instance of a state trying to directly reverse executed transactions.

Michigan Court Order at the Center

The dispute traces back to June, when a Michigan county circuit court ordered Kalshi to halt online sports wagers in the state, acting on a request from the state’s attorney general. Kalshi then filed an emergency request with the CFTC on July 2 after being told to void, cancel and refund trades made by certain Michigan users.

Regulator Warns of Market Risk

Selig said reversing already-executed trades was an unprecedented step that could destabilize the broader marketplace and undermine confidence in contract certainty. The CFTC’s order warned that allowing such cancellations could leave traders worried that trades made today might be unwound weeks or even years later.