Federal Judge Blocks Minnesota Prediction Market Ban on July 21, Allows Kalshi and Polymarket Operations

KALSHI0.39%
According to The Block, on July 21, U.S. District Judge Katherine Menendez granted a preliminary injunction blocking Minnesota from enforcing its prediction market ban, allowing Kalshi and Polymarket to continue operating in the state. The CFTC, Kalshi, and Polymarket had filed suit against Minnesota in May, arguing the state unlawfully attempted to regulate federally overseen derivatives markets under CFTC exclusive jurisdiction. Minnesota's law was scheduled to take effect on August 1. The judge ruled that Minnesota's statute is likely partially preempted by the Commodity Exchange Act because the CFTC has exclusive jurisdiction over derivative transactions.
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