The CFTC orders Kalshi to comply with the Michigan deal, as the battle over state supervision heats up

On July 15, the U.S. Commodity Futures Trading Commission (CFTC) on Tuesday ordered Kalshi, a forecasting market platform, to fulfill all trading contracts involving Michigan residents, directly challenging the state's previous court ruling calling for the cancellation of relevant transactions. About two weeks ago, a Michigan court ordered Kalshi to stop providing forecast contracts related to sports events and requested the cancellation of some executed transactions. But the CFTC made it clear that state governments have no right to interfere in market transactions within the scope of federal regulation. CFTC Chairman Michael Selig said strongly in his statement: "State governments cannot force designated contract markets to violate federal obligations, and federal law does not allow discrimination against residents of any state. The cancellation of executed transactions is an unprecedented and dangerous move that can trigger a chain reaction in the market and undermine contract certainty, the core cornerstone of market operations." Currently, the CFTC is engaged in a head-on confrontation with multiple states over jurisdiction over forecast markets, and has filed lawsuits against Connecticut, Illinois and New York in an attempt to clarify the regulatory leadership that Congress grants to federal agencies. This power game between the federal and state may ultimately be decided by the Supreme Court.