A federal court granted a preliminary injunction preventing Minnesota from enforcing its new prediction-market felony law. Judge Katherine Menendez protected Kalshi and Polymarket, designated by the CFTC as contract markets, days before the law was set to take effect on August 1. The court found that the Commodity Exchange Act likely expressly preempts part of the state statute, whose core offense carries up to five years imprisonment. The temporary protection applies only to CFTC-designated exchanges, leaving customers, service providers and advertisers exposed. Minnesota Attorney General Keith Ellison said the state disagreed and would continue defending the law as the record develops.
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