The Commodity Futures Trading Commission has filed a lawsuit against the state of Minnesota and Governor Tim Walz over the nation's first outright ban on prediction markets.
Signed into law Monday, Senate File 4760 makes it illegal to advertise, create, or operate prediction market platforms like Kalshi and Polymarket within the state. The law classifies event contracts on sports, military conflicts, and weather as wagers, set to take effect August 1.
The CFTC argues it has exclusive jurisdiction under the Commodity Exchange Act and is seeking a preliminary and permanent injunction. The agency claims Minnesota's ban directly conflicts with federally approved contracts and self-certified products.
Chairman Michael Selig, currently the sole CFTC commissioner, has pledged to challenge state-level actions. Minnesota is also moving forward with a separate law allowing banks to offer crypto custody services, and a ban on crypto kiosks aimed at curbing scams.