finance
Minnesota Enacts Ban on Prediction Markets; Kalshi Sues
Kalshi filed a federal lawsuit against Minnesota seeking to stop enforcement of a new state law that will criminalize operating and advertising prediction market platforms starting August 1. The Commodity Futures Trading Commission filed a similar motion on May 19.
May 29, 5:59 AM·1m read2 sources
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Kalshi filed a federal lawsuit in Minnesota seeking to block a new state law that makes it a crime to operate, host, or advertise prediction market platforms beginning August 1. The platform argues the law violates the Supremacy Clause because the federal Commodity Exchange Act gives the CFTC exclusive jurisdiction over derivatives and swaps traded on designated contract markets.
Kalshi also challenges the law's advertising restrictions, claiming they violate the First Amendment.
The CFTC filed its own motion on May 19, the day after Governor Tim Walz signed the legislation, asserting that the state measure is unconstitutional.
Kalshi has obtained preliminary injunctions against similar enforcement efforts in New Jersey and Arizona. On Wednesday, President Donald Trump stated that it is critically important for the CFTC to maintain sole authority over prediction markets.
