Kalshi follows CFTC in suing Minnesota over its law criminalizing prediction markets
Summary
Kalshi sued Minnesota over a new law set to criminalize operating, hosting, or promoting prediction markets in the state starting Aug. 1. Kalshi argues the law is preempted by federal law under the Supremacy Clause because the Commodity Exchange Act gives the CFTC exclusive jurisdiction over derivatives and swaps on designated contract markets. It also says the advertising ban violates the First Amendment. The suit follows a CFTC challenge to the law and comes after Kalshi won preliminary injunctions against similar enforcement efforts in New Jersey and Arizona. Trump and CFTC leadership have recently emphasized federal control over prediction markets, while U.S. lawmakers are also investigating the sector.
