Judge pauses Minnesota prediction market ban in case brought by Kalshi, Polymarket and CFTC
AI Market Summary
A federal judge granted a preliminary injunction pausing Minnesota's ban on prediction markets, finding likely preemption by the Commodity Exchange Act and affirming the CFTC's jurisdiction over event contracts structured as swaps. The decision is supportive for U.S.-based prediction market venues and reduces near-term regulatory friction at the state level, but it is narrow, interim, and not directly tied to major crypto assets or broader risk pricing.
Impact level
● Low
Affected assets
BTC/USDT-3.12%
AI Insight · BTC/USDTAI Insight
● Neutral
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A federal judge issued a preliminary injunction halting Minnesota’s new law that would bar prediction market operators from offering their products in the state. The court said the statute is likely expressly preempted by the federal Commodity Exchange Act and that the plaintiffs are likely to succeed after a full trial. The lawsuit was filed by Kalshi, Polymarket and the U.S. Commodity Futures Trading Commission, arguing the state law intrudes on the CFTC’s jurisdiction over “swaps.”
