Kalshi follows CFTC in suing Minnesota over law criminalizing prediction markets

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Kalshi follows CFTC in suing Minnesota over law criminalizing prediction markets The Governor of Minnesota signed into law a measure that, starting Aug. 1, makes it a crime to advertise and operate prediction market platforms across the state. By Olivier Acuna | Edited by Sheldon Reback May 29, 2026, 9:59 a.m. 1 min read Make preferred on Kalshi and the CFTC have gone to court in Minnesota to fight a new state law criminalizing prediction markets they say is anticonstitutional. (Jonathunder/Wikimedia Commons) What to know : Prediction market platform Kalshi sued Minnesota in federal court to block a new state law that would criminalize operating, hosting or promoting such markets beginning Aug. 1. Kalshi argues the law is unconstitutional, saying it intrudes on the CFTC’s exclusive federal authority under the Commodity Exchange Act and unlawfully restricts advertising in violation of the First Amendment. The lawsuit comes as prediction markets face mounting global scrutiny, including recent bans in several countries and a U.S. House investigation into whether government employees are trading on nonpublic information. Prediction market Kalshi filed a federal lawsuit against a Minnesota bill to criminalize operating, hosting or promoting such a platform in the state starting Aug. 1. The filing follows a motion filed by the Commodity Futures Trading Commission (CFTC) on May 19, the day after the law was signed by Governor Tim Walz, arguing that the legislation violated the U.S. Constitution by criminalizing at the state level the operation of prediction markets governed by federal regulators. In its filing, Kalshi claimed the law violates the Supremacy Clause of the constitution, which says the federal Commodity Exchange Act (CEA) grants the CFTC “exclusive jurisdiction” over derivatives and swaps traded on designated contract markets (DCMs). The platform also challenged a provision that criminalizes the marketing or advertising of prediction markets, saying it violated the First Amendment. On Wednesday, U.S. President Donald Trump said it was critically important that the CFTC maintain sole authority over prediction markets, echoing CFTC Chair Michael Seligl. Kalshi has recently won similar preliminary injunctions against enforcement attempts in New Jersey and Arizona. Prediction markets are facing challenges outside the U.S. and in the past week have been banned in countries including Indonesia, Spain and India. The U.S. government is conducting a probe into prediction markets, with a House of Representatives committee investigation being confirmed last week. Prediction Markets CFTC Kalshi Regulation More For You White House reviews CFTC prediction-market rule as Trump backs federal control By Sam Reynolds | Edited by Sheldon Reback May 28, 2026 The proposal could shape how Kalshi, Polymarket, and other event-contract platforms operate as states challenge the CFTC’s authority. What to know : The White House’s Office of Information and Regulatory Affairs has begun reviewing a proposed CFTC rule on prediction markets, a key step in the federal regulatory process. The move signals the CFTC is advancing toward a broader federal framework for event contracts, including those tied to elections, gaming and sports,... Read full story Latest Crypto News Strategy's STRC slips below $99 as Strive captures investor attention 49 minutes ago Solana, Sui and Aptos wallet data targeted in TrapDoor package attack 1 hour ago OKX Ventures buys $53 million stake in Korea's Coinone exchange 3 hours ago XRP rebounds above $1.30 after volume surge, but bears still control the bigger picture 4 hours ago Bitcoin, ether little-changed despite record stocks, falling oil and easing war fears 5 hours ago Bitcoin's record holder supply hides a buyer drought, CryptoQuant says 5 hours ago Top Stories Crypto trading firm FalconX confidentially files with SEC for IPO, hires bankers 14 hours ago Hyperliquid's pre-IPO SpaceX contracts suffer 45% flash crash, liquidating $1.5 million 16 hours ago Why the Ethereum Foundation is suddenly again at the center of crypto’s culture war 14 hours ago Asset manager Grayscale delays IPO plans as crypto listing boom loses steam 20 hours ago Toddlers learn by falling: Why DeFi's $20 billion TVL drop is just a market stress-test 17 hours ago