CFTC Takes Big Swing in Pushing Back on Michigan Kalshi Order, Bloomberg Law

Bloomberg Law spoke with partners Robert Schwartz and Stacie Hartman about the Commodity Futures Trading Commission’s (CFTC’s) unprecedented use of its emergency authority in its dispute with Michigan over prediction market platform Kalshi.

The article examines the CFTC’s assertion of exclusive jurisdiction over prediction markets and the implications for federal preemption. Rob said that the Michigan court’s order requiring Kalshi to liquidate existing positions prompted the agency’s response. “The fact that the court sort of hit the market with a stun gun is what prompted the CFTC to act here,” Rob said. Stacie added that the CFTC’s action “supports the argument for federal preemption, precisely to avoid a state-by-state result here.”

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