Kalshi filed an emergency lawsuit in federal court to stop Minnesota from enforcing SF 3432, a law signed May 26 that makes certain prediction market activity a felony. The law applies to operating, supporting, marketing, or advertising event contracts tied to outcomes involving sports, elections, legal proceedings, public figures, wars, emergencies, popular culture, and other future events. Kalshi operates a federally regulated derivatives exchange and argues its event contracts are overseen by the CFTC. The company contends Minnesota cannot ban activity that federal regulators permit and claims the state law impermissibly usurps the CFTC’s exclusive jurisdiction under the Commodity Exchange Act. Kalshi asks the court to declare the law invalid as applied to its exchange and to block enforcement of both the new measure and existing state gambling laws.
"In the complaint, Kalshi argues Minnesota enacted a law that "impermissibly usurps the CFTC's exclusive jurisdiction" by prohibiting event contracts traded on federally designated exchanges. The company says that once the law becomes active, it "will be deemed a felon in Minnesota for offering certain event contracts" that federal law allows."
#prediction-markets #federal-vs-state-regulation #cftc-jurisdiction #minnesota-law-sf-3432 #derivatives-exchange
Read at ReadWrite
Unable to calculate read time
Collection
[
|
...
]