CFTC Stays Kalshi Rule Change After Michigan Trade-Cancellation Order

The Commodity Futures Trading Commission has stayed an emergency rule change proposed by KalshiEX after a Michigan state court order directed the exchange to cancel certain already-executed trades involving Michigan residents. The agency also used emergency authority to order KalshiEX to fulfill the open trades in line with its normal practices.

The CFTC said the Commodity Exchange Act requires a uniform national market in derivatives transactions, with impartial access to regulated markets and transparent, non-discriminatory access criteria. Chairman Michael S. Selig said cancelling executed trades would be an unprecedented step that could undermine certainty in derivatives contracting.

The release also points to the wider jurisdictional fight around event-contract venues. The CFTC said states have brought or attempted actions against CFTC-regulated designated contract markets, and that the agency has filed lawsuits against several states to defend the jurisdiction Congress gave it.

For traders, the immediate issue is not just Kalshi or Michigan. It is whether executed event-contract trades can be disturbed after the fact by state-level orders, and how quickly the federal regulator will step in when a registered venue says it faces conflicting obligations.

Why it matters

Event contracts are increasingly watched by active traders as a regulated alternative to offshore prediction markets. The CFTC’s action signals that post-trade certainty and equal market access are central issues as these venues scale.

What to watch next

Watch for the next court filings in the state-level disputes and for any follow-up CFTC orders that clarify how registered exchanges should handle conflicting state directives.