According to a report by Foresight News citing CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) has intervened in a dispute between a Michigan court and prediction market company Kalshi, issuing an order prohibiting Kalshi from complying with local court requests to cancel previously executed customer trades. The CFTC chair believes that the CFTC has an unshakable exclusive regulatory authority over Kalshi’s trades and will regulate Kalshi as a designated contract market (DCM). The CFTC said, “Canceling executed trades is an unprecedented measure that could have ripple effects across the entire market and undermine contract certainty, which is a necessary component of the market’s normal operations.”

In June this year, at the request of the state attorney general, a county circuit court in Michigan ordered Kalshi to stop its online sports betting business in the state. On July 2, Kalshi filed an emergency request with the CFTC to respond to the court order by rescinding and refunding some of the trades of users in Michigan.