The U.S. Commodity Futures Trading Commission (CFTC) has issued an interpretation stating that registered prediction-market exchanges, including Kalshi and Polymarket, must not block access for users in specific states.
Citing rules requiring designated contract markets (DCMs) to provide competitive, open and fair access, the CFTC said that regional service restrictions in the United States are, in principle, not permitted. The exchanges must resume services in restricted areas within 30 days or submit to the CFTC an explanation of why resumption is not possible.
The issue is that this conflicts with orders from some courts. Kalshi has restricted trading access for users in certain areas, including Nevada, Washington and Michigan, amid legal disputes, while recent federal court decisions have also required services in specific areas to be blocked.
The CFTC said derivatives markets should operate nationwide under consistent standards and explained that regional access restrictions could harm liquidity and market participation. As a result, legal clashes are expected to continue between the CFTC, which is emphasizing federal regulatory authority over prediction markets, and state governments and the courts.