CFTC Orders Kalshi to Honor Michigan Trades Despite State Restraining Order

The U.S. Commodity Futures Trading Commission (CFTC) ordered Kalshi on Tuesday to honor trades involving Michigan residents, despite Michigan’s effort to force cancellations. According to NS3.AI, the directive follows a Michigan state court’s 14-day restraining order issued about two weeks ago that told Kalshi to stop offering sports-related event contracts and to unwind certain existing trades. Kalshi is a registered designated contract market regulated by the CFTC under the Commodity Exchange Act. The CFTC has also filed lawsuits against several states, arguing it is acting to protect the jurisdiction it says Congress granted.