CFTC Tells Kalshi, Polymarket to Offer Nationwide Service, Risking Clash With Court Orders

Summary

• The U.S. Commodity Futures Trading Commission (CFTC) has told prediction-market platforms Kalshi and Polymarket to provide services nationwide, according to the report.
• The CFTC said exchanges registered as designated contract markets (DCMs) should not block trading access for customers in specific states, the report said.
• As a result, the platforms must resume trading in suspended regions within 30 days or submit reasons they cannot restart, and a clash between regulators and the courts could follow, the report said.

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The Commodity Futures Trading Commission has told prediction-market platforms including Kalshi and Polymarket to provide services across the United States, raising the possibility of a conflict with court orders in some states that restrict their operations.

CoinDesk reported on November 6 that the CFTC said exchanges registered as designated contract markets, or DCMs, should not block trading access for customers in specific states.

Under that position, the platforms must resume trading within 30 days in areas where service was suspended or submit to the CFTC an explanation for why they cannot restart.

Kalshi is currently blocking trading access for customers in several states, including Nevada, Washington and Michigan, because of ongoing legal disputes.

CoinDesk said the CFTC's demand that prediction-market platforms offer nationwide service despite court-ordered business restrictions could set up a clash between regulators and the courts.

JH Kim