The Commodity Futures Trading Commission stayed an emergency rule change proposed by KalshiEX after a Michigan state court ordered the company to cancel certain previously executed trades involving Michigan residents. The agency also used its emergency authority to direct KalshiEX to fulfill the open trades under its normal practices, preventing a state-driven unwind of transactions on a CFTC-regulated market. The Commission said the step was needed to uphold the Commodity Exchange Act’s requirement for a uniform national derivatives market, impartial access, and non-discriminatory treatment of participants, as well as predictability in execution and clearing. It described the cancellation of already executed trades as unprecedented and warned that it could have wider market effects. The release also placed the dispute in a broader jurisdictional conflict with states, noting that the CFTC has brought lawsuits against Arizona, Connecticut, Illinois, Kentucky, Minnesota, New Mexico, New York, Rhode Island and Wisconsin, and has filed amicus briefs in the U.S. Courts of Appeals for the Sixth and Ninth Circuits and the Supreme Judicial Court of Massachusetts.
Commodity Futures Trading Commission2026-07-14
Commodity Futures Trading Commission stays KalshiEX emergency rule change and orders fulfillment of open trades tied to Michigan court action
The Commodity Futures Trading Commission stayed KalshiEX’s emergency rule change responding to a Michigan court order and directed the exchange to fulfill the open trades under its normal practices. The agency said federal law requires a uniform national derivatives market and does not allow state-driven discrimination against residents or the cancellation of executed trades.