Judge Katherine Menendez granted the CFTC’s motion. She ruled that the new state law is preempted by the CFTC’s Commodity Exchange Act. Accordingly, the federal regulator has exclusive jurisdiction over swap transactions. Kalshi, Polymarket, and other prediction markets will continue operating in the state while the litigation proceeds. The bill prohibiting the creation, operation, and advertising of prediction markets in Minnesota was set to take effect on August 1. Previously, courts in New York, Michigan, and Washington had ruled against federal regulation of prediction markets.
News Regulation
Federal court has barred Minnesota from blocking prediction markets
Judge Katherine Menendez granted the CFTC’s motion. She ruled that the new state law is preempted by the CFTC’s Commodity Exchange Act. Accordingly, the federal regulator has exclusive jurisdiction ov...