Minnesota enacted a law signed by Gov. Tim Walz that bans prediction markets outright. The law makes it a felony to create, operate, or advertise a prediction market and defines prediction markets as systems allowing wagers on future outcomes of specified events not determined by contract party performance. The US Commodity Futures Trading Commission sued Minnesota in US District Court for the District of Minnesota, arguing the law is the most aggressive state action to shut down CFTC-regulated markets and undermine the federal regulatory regime. The CFTC seeks preliminary and permanent injunctions to prevent enforcement starting August 1. Minnesota Attorney General Keith Ellison will defend the law, citing concerns about harms to Minnesotans.
"The US Commodity Futures Trading Commission announced a lawsuit against the state, saying that Minnesota's "new legislation represents the most aggressive move by a state to shut down CFTC-regulated markets and undermine the federal regulatory regime set up by Congress more than 50 years ago.""
""This Minnesota law turns lawful operators and participants in prediction markets into felons overnight," CFTC Chairman Michael Selig said. "Minnesota farmers have relied on critical hedging products on weather and crop-related events for decades to mitigate their risks. Governor Walz chose to put special interests first and American farmers and innovators last.""
"The Minnesota law makes it a felony to create, operate, or advertise a prediction market. The CFTC asked the court for preliminary and permanent injunctions to prohibit Minnesota from enforcing the law, which is scheduled to take effect on August 1. The case was filed in US District Court for the District of Minnesota."
"Minnesota Attorney General Keith Ellison will defend the state law in court. "I'm very concerned about the harms of prediction markets on Minnesotans," Ellison said in a statement provided to Ars."
Read at Ars Technica
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