By SectorWire desk ·
The report said that the CFTC told Kalshi to continue sports contracts in Michigan and settle existing trades, contrary to a state court order. Kalshi challenged state oversight on federal-law grounds and still faces a geofencing deadline in August.
Conflicting state and federal directions leave Kalshi facing competing obligations in Michigan.
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Coinbase must suspend Michigan prediction markets while Michigan withholds enforcement during compliance and related appeals.
Kalshi’s involvement has cost the organisation support from the Michigan regulator.
The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.
The outcome could determine whether prediction market operators can continue serving the US market under federal or state rules.
Kalshi’s proposed rule would allow financial penalties, suspension or account deactivation for users harassing athletes or third parties over trading.