The CFTC has ordered Kalshi to perform the Michigan deal and to compete with the state's regulatory powers
On Tuesday, 15 July, the United States Commodity Futures Trading Commission (CFTC) ordered Kalshi, the predictive market platform, to perform all contracts of dealing involving residents of Michigan, directly calling for a previous court decision to set aside the relevant transactions. About two weeks ago, the Michigan Regional Court ordered Kalshi to cease providing a forecast contract for sporting events and requested that the part of the transaction that had been executed be cancelled. However, the CFTC made it clear that the Länder had no right to interfere in market transactions under federal supervision. In his statement, the Chairman of CFTC, Michael Selig, made a strong statement: “The state government cannot impose a contractual market in violation of federal obligations and federal law does not allow discrimination against residents of any state. Revoking implemented transactions is an unprecedented and dangerous initiative that could trigger a market chain reaction, undermining contractual certainty, a central building block of market operations.” Currently, CFTC has engaged in a positive exchange with several states on projected market jurisdiction, and has brought lawsuits against Connecticut, Illinois and New York, in an attempt to clarify the regulatory dominance that Congress has given to federal agencies. This race for power between the Federation and the Länder may ultimately be decided by the Supreme Court。
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