CFTC directs Kalshi to honor trades for Michigan residents despite state judge’s order

The CFTC has directed Kalshi to honor trades for Michigan residents, effectively blocking the platform from canceling them despite a state judge's order. This regulatory move by the US derivatives regulator could redefine the balance of federal versus state authority within prediction markets. Such a decision may significantly impact regulatory approaches and market dynamics nationwide, as the CFTC asserts federal oversight over state-level judicial mandates regarding the execution of trades for Michigan residents.