US regulator sues to block Minnesota's first-in-nation ban on prediction markets
The federal regulator says the new law conflicts with federal derivatives rules and could make operators and users felons starting Aug. 1.
- On Tuesday, the Commodity Futures Trading Commission sued to block Minnesota from enforcing a new law that criminalizes prediction markets, which Governor Tim Walz signed to prohibit operations starting August 1.
- Minnesota Attorney General Keith Ellison defended the ban, stating prediction markets are 'designed to be addictive' and 'prey especially on young people and low-income folks,' adding they help the wealthy at the expense of others.
- CFTC Chairman Michael Selig stated the law 'turns lawful operators and participants in prediction markets into felons overnight,' while Polymarket added the state's action 'runs counter to the federal government's established framework.'
- Federal regulators have pursued similar interventions against other states, recently securing a court order blocking Arizona from pursuing a criminal case against New York-based Kalshi; Nevada maintains an in-effect ban, while Massachusetts' highest court is weighing an injunction.
- Under President Donald Trump, the agency maintains prediction markets fall exclusively under federal authority to regulate 'swaps,' making this clash between state criminalization and federal oversight the primary legal dispute for the $22 billion industry.
6 Articles
6 Articles
CFTC Sues Minnesota Over Law Banning Prediction Markets
The U.S. Commodity Futures Trading Commission sued Minnesota on Tuesday to block a newly enacted ban on prediction markets, the sixth state the CFTC has taken to federal court to assert control over regulation of the markets.
Feds sue Minnesota to block law that would make prediction market trading a felony
The federal commodities regulator filed suit against Minnesota to stop a new state law, signed by Gov. Tim Walz, that would criminalize operating or participating in prediction markets starting Aug. 1.
Wall Street regulator sues to block Minnesota’s first-in-nation ban on prediction markets
The Commodity Futures Trading Commission on Tuesday filed a lawsuit seeking to block Minnesota from enforcing a newly enacted law that made the state the first nationally to outright ban prediction markets like those run by Kalshi and Polymarket.
US regulator sues to block Minnesota's first-in-nation ban on prediction markets
The U.S. Commodity Futures Trading Commission on Tuesday filed a lawsuit seeking to block Minnesota from enforcing a newly enacted law that made the state the first nationally to outright ban prediction markets like those run by Kalshi and Polymarket.
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