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Better Markets criticizes CFTC over Kalshi decision

15 July 2026
(PRESS RELEASE) -- Benjamin Schiffrin, Director of Securities Policy for Better Markets, issued the following statement in connection with the Commodity Futures Trading Commission staying a rule change Kalshi submitted to comply with a court order:

“Today, the CFTC reached a new milestone in its campaign to unleash nationwide gambling in contravention of state and tribal law by directing Kalshi to not comply with an order issued by a Michigan state court. The court’s order prevented Kalshi from offering event contracts on sporting events to Michigan residents after finding relief necessary to prevent ‘Michigan and its most vulnerable citizens . . . from being exploited by Kalshi’s sports betting operation masquerading as an investment opportunity.’ As part of that relief, the court ordered Kalshi to close out certain bets and required that the bets be voided, cancelled, and refunded.

“Although Kalshi filed a rule change with the CFTC to void, cancel, and refund the bets, and Kalshi said it would reimburse users so that no users lost money, the CFTC has now stayed the rule change and ordered Kalshi to execute the bets, in defiance of the Michigan court. The CFTC says it did so because it will ‘not allow states or state courts to bully registered entities into violating the Commodity Exchange Act and CFTC regulations.’ The CFTC noted that it has supported Kalshi in litigation against states that view Kalshi as offering illegal sports betting and has itself sued some of those states. Yet the CFTC did not explain why it now views a court that rules in favor of a state and against Kalshi as ‘bullying.’ Nor did it explain the source of its authority for ordering a registered entity such as Kalshi to defy a lawful court order, no matter how much it supports Kalshi or may disagree with that order.

“In March, the CFTC saw no problem with voiding bets when it permitted Kalshi to reimburse users for any bets, fees, or losses from an event contract on whether Ayatollah Ali Khamenei would be ‘out’ by April 1. This came after public and trader backlash on both the existence and marketing of the ‘death” market and its resolution to ‘no’ by Kalshi after the Ayatollah’s assassination. Here, however, the CFTC says that similarly reimbursing users in Michigan who used Kalshi to bet on sports would lead to a market emergency. It said this even though Kalshi said the number of bets impacted by the court’s order is ‘limited.’ The CFTC has proven over and over and over in the last year that it will do anything that favors Kalshi. It appears that now includes ordering Kalshi to defy an order of a court.”

Better Markets criticizes CFTC over Kalshi decision is republished from iGamingNews.com.


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