The Commodity Futures Trading Commission has instructed Kalshi to process specific prediction trades placed by Michigan residents. This directive overrides a recent state court order that required the platform to cancel and refund the same transactions.
Regulatory Jurisdiction Dispute
The federal regulator’s intervention establishes a direct jurisdictional clash between Washington and state-level authorities over digital wagering platforms. While Michigan courts initially ruled that the trades must be voided and funds returned to users, the CFTC maintains its authority to enforce contract fulfillment under federal oversight.The ruling marks a significant development in the ongoing regulatory dispute surrounding prediction markets. Federal oversight bodies continue to assert jurisdiction over these platforms, challenging state attempts to restrict or reclassify digital trading activities. The outcome will likely influence how other jurisdictions handle similar platform operations.
The development was first reported by Gambling Inside.