A US federal judge temporarily blocked Minnesota from enforcing its new prediction market ban against CFTC-regulated platforms Kalshi and Polymarket US. Judge Katherine Menendez found that the plaintiffs were likely to succeed in showing that the Commodity Exchange Act preempts the state law. The law was scheduled to take effect on August 1 and would have prohibited the creation, operation and advertising of prediction markets with criminal penalties. The preliminary injunction allows the platforms to continue operating in the state while litigation proceeds. The judge cautioned, however, that the injunction could eventually be narrowed as not every event contract met the legal definition of a swap.
Source: Read the original article
