CFTC orders Kalshi to defy Michigan court in prediction market dispute

The U.S. Commodity Futures Trading Commission invoked emergency powers not used since the 1970s to instruct prediction‑market platform Kalshi to continue pending sports trades in Michigan, directly contravening a state court order. Kalshi said it had already complied with the judge and that the volume of unwound trades was modest.

The directive reflects the Trump administration’s broader push to block state regulation of prediction markets, a sector that has surged in popularity. Former CFTC general counsel Robert Schwartz noted, “This hasn’t happened in 46 years,” highlighting the rarity of such a federal override. Kalshi’s head of enforcement, Bobby DeNault, replied, “We are disappointed…we are being put in an impossible position, looking to follow state court orders that may contradict our federal regulatory obligations.” The move may set a precedent for future federal‑state conflicts over financial‑market oversight.