CFTC blocks Kalshi from cancelling Michigan users' sports event contract positions
2026-07-16 04:33
Odaily Planet Daily News The U.S. Commodity Futures Trading Commission (CFTC) on Tuesday suspended an emergency rule from Kalshi, preventing it from forcedly liquidating open sports event contracts held by some Michigan residents, and requiring Kalshi to fulfill the relevant transactions through normal procedures.
Kalshi submitted the emergency rule on July 12, after the Ingham County Circuit Court in Michigan orally requested it to close some positions, and a letter on July 6 stated that the relevant transactions must be voided, cancelled, and refunded.
The dispute began when Michigan Attorney General Dana Nessel and the Michigan Gaming Control Board sued Kalshi in March, accusing its sports event contracts of constituting unlicensed internet sports betting. Kalshi argues that the relevant products are federally regulated derivatives under the Commodity Exchange Act.
The CFTC stated that allowing Kalshi's emergency rule to take effect could undermine confidence that completed derivatives transactions will be fulfilled and cause significant market disruption. CFTC Chairman Michael Selig said that states cannot force designated contract markets to breach their obligations.
Kalshi submitted the emergency rule on July 12, after the Ingham County Circuit Court in Michigan orally requested it to close some positions, and a letter on July 6 stated that the relevant transactions must be voided, cancelled, and refunded.
The dispute began when Michigan Attorney General Dana Nessel and the Michigan Gaming Control Board sued Kalshi in March, accusing its sports event contracts of constituting unlicensed internet sports betting. Kalshi argues that the relevant products are federally regulated derivatives under the Commodity Exchange Act.
The CFTC stated that allowing Kalshi's emergency rule to take effect could undermine confidence that completed derivatives transactions will be fulfilled and cause significant market disruption. CFTC Chairman Michael Selig said that states cannot force designated contract markets to breach their obligations.
บทความแนะนำ
