The CFTC has already sued to forestall the legislation’s enforcement.
Minnesota is the most recent state to try to curtail the actions of prediction markets like Kalshi and Polymarket. Governor Tim Walz signed a bill that included plenty of public security provisions, together with a ban on these markets working throughout the state. The provisions are slated to take impact on August 1, however they’re already going through challenges.
This seems to be the primary try by a state to control prediction markets by way of laws moderately than lawsuits, however the lawsuits have not gotten off to an excellent begin. Three of the states which have launched into authorized instances towards these companies had been sued by the US Commodity Futures Buying and selling Fee, which claims that solely it has the ability to supervise prediction markets. The CFTC filed an amicus brief final week to intervene in an extra lawsuit in Ohio.
The federal regulator has additionally hopped onto the Minnesota legislation, however moderately than making the identical case, its argument is that the legislation would stop weather-related predictions made by farmers to hedge towards crop losses. NPR reported that an up to date model of the legislation with an exception for that agricultural software is prone to be permitted.
