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Kalshi says it is being put in an \u201cimpossible position\u201d after the US commodities regulator on Tuesday said it was blocking the prediction market platform from canceling trades in Michigan, contradicting a recent state court order.<\/p>\n
On June 29, Kalshi was ordered<\/span><\/a> by Ingham County Circuit Court Judge Rosemarie Aquilina to cease offering sports betting contracts to Michigan users while a lawsuit over whether Kalshi violated the state\u2019s sports betting laws plays out. The Commodity Futures Trading Commission ordered<\/span><\/a> Kalshi on Tuesday not to comply with the state order and continue operating.<\/p>\n \u201cWe are disappointed by this decision and believe it is unfair to Kalshi,\u201d Robert DeNault, the company\u2019s head of enforcement and legal counsel said<\/span><\/a> in a statement on X.\u00a0<\/p>\n \u201cWe already acted and unwound the trades, as the Michigan court order required us to do. We are being put in an impossible position, looking to follow state court orders that may contradict our federal regulatory obligations. We did not have a choice.\u201d\u00a0<\/p>\n Source: <\/em>Robert DeNault<\/em><\/a><\/p>\n The conflicting orders highlight an unresolved regulatory divide between the CFTC and nearly two dozen state regulators over which authorities have jurisdiction over prediction markets. The CFTC said Michigan was the first state to attempt to interfere with executed derivatives transactions.\u00a0<\/p>\n \u201cCanceling trades that have already been executed is an unprecedented step that risks a cascading effect on the entire marketplace and undermines the certainty in contracting that is a necessary component of a functioning market,\u201d said Selig.\u00a0<\/p>\n \u201cThe Commission will not allow states or state courts to bully registered entities into violating the Commodity Exchange Act and CFTC regulations.\u201d\u00a0<\/p>\n A Kalshi spokesperson said it was reviewing the CFTC\u2019s order and considering its next steps, according<\/span><\/a> to Reuters.\u00a0<\/p>\n Related: <\/strong><\/em>OpenAI quietly adds Kalshi World Cup odds to ChatGPT: Report<\/strong><\/em><\/span><\/a><\/p>\n Speaking on Fox Business on Friday, CFTC Chair Michael Selig said<\/a> it is \u201ccritical\u201d that the regulator maintains its regulatory authority over prediction markets. <\/p>\n \u201cWe\u2019ve sued nine states now, and we\u2019ll continue to sue any state that attempts to impose criminal or civil fines against CFTC-registered exchanges.\u201d<\/p>\n Magazine: <\/strong><\/em>Strategy became a symbol of the dot-com crash: Could history repeat?<\/strong><\/em><\/span><\/a><\/p>\n<\/div>\n