Minnesota enacted a bill with public safety provisions that ban prediction markets such as Kalshi and Polymarket from operating in the state. The provisions are scheduled to take effect on August 1, but legal challenges are already underway. The CFTC has sued to block enforcement, arguing that it alone has authority to oversee prediction markets. Several states that pursued lawsuits against these businesses have faced CFTC suits, and the CFTC filed an amicus brief to intervene in an additional Ohio case. The CFTC’s position in Minnesota focuses on whether the ban would restrict weather-related predictions used by farmers to hedge crop losses, with an updated law likely to include an agricultural exception.
"Minnesota is the latest state to try and curtail the activities of prediction markets like Kalshi and Polymarket. Governor Tim Walz signed a bill that included a number of public safety provisions, including a ban on those markets operating within the state. The provisions are slated to take effect on August 1, but they are already facing challenges."
"Three of the states that have embarked on legal cases against these businesses were sued by the US Commodity Futures Trading Commission, which claims that only it has the power to oversee prediction markets. The CFTC filed an amicus brief last week to intervene in an additional lawsuit in Ohio."
"The federal regulator has also hopped onto the Minnesota law, but rather than making the same case, its argument is that the law would prevent weather-related predictions made by farmers to hedge against crop losses. NPR reported that an updated version of the law with an exception for that agricultural application is likely to be approved."
Read at Engadget
Unable to calculate read time
Collection
[
|
...
]