CFTC Directs Kalshi to Continue Washington Operations

The U.S. Commodity Futures Trading Commission (CFTC) has instructed Kalshi to disregard a Washington state court order to cease certain operations. This directive advises Kalshi to adhere to federal regulations amidst the state-level ruling, according to CoinGape.

What Happened

The U.S. Commodity Futures Trading Commission (CFTC) has directed Kalshi, a prediction market platform, to disregard state court orders in Washington and continue its operations in accordance with federal rules, CoinGape reported on August 14, 2026. This federal guidance follows a Washington state court’s ruling which ordered Kalshi to cease offering certain contracts, as reported by CoinGape.

Specifically, a Washington state judge ordered Kalshi to shut down its sports and election prediction markets within the state by September 2, according to GeekWire. This injunction required Kalshi to cease most of its prediction markets in Washington, The Verge stated. Covers.com further reported that the judge’s order placed restrictions on Kalshi’s sports prediction markets.

Key Details

• The CFTC has instructed Kalshi to ignore state court orders and operate under federal rules (CoinGape).
• A Washington state court issued a cease ruling against Kalshi regarding some of its contracts (CoinGape).
• The Washington judge ordered Kalshi to shut down its sports and election prediction markets in the state by September 2 (GeekWire).
• The injunction from the Washington court mandated Kalshi to close most of its betting markets within the state (The Verge).

Why It Matters

This situation highlights a jurisdictional conflict between federal and state regulatory bodies concerning prediction markets. The CFTC’s instruction for Kalshi to adhere to federal rules despite a state-level cease order establishes a precedent for how these platforms may navigate conflicting regulatory directives. Such developments are crucial for B2B operators, regulators, affiliates, and industry analysts monitoring the legal landscape of emerging financial and betting markets, particularly those with elements of prediction, as they indicate potential challenges in regulatory harmonization across different levels of government.

Originally reported by CoinGape·Published 14 Aug 2026, 10:06