CFTC Sues Minnesota, Governor Walz over Prediction Markets Ban
Cointelegraph
The CFTC has sued Minnesota and Governor Tim Walz, claiming federal jurisdiction over prediction markets currently being banned by state law.Summary
The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against the state of Minnesota, Governor Tim Walz, and other officials, seeking to block a new state law that bans prediction market platforms. The CFTC argues that it holds exclusive federal jurisdiction over these markets under the Commodity Exchange Act and that state-level attempts to criminalize platforms like Kalshi and Polymarket interfere with federal regulatory authority. While Minnesota officials passed the law to address concerns over wagers on event contracts, the CFTC contends that these activities are federally regulated swaps, making the state ban legally unenforceable.
(Source：Cointelegraph)