A federal judge halted Minnesota’s SF 3432, the first state law to criminalize prediction markets, granting a preliminary injunction to Kalshi, Polymarket and the CFTC on Monday, days before the statute was due to take effect. Judge Katherine Menendez found the three plaintiffs likely to succeed on express-preemption grounds and likely to suffer irreparable harm. Her 44-page order bars enforcement against exchanges registered with the CFTC as designated contract markets. The ruling applies to contracts on events with clear economic consequences such as Senate races, the World Cup winner and the Strait of Hormuz reopening, but not necessarily to markets on Love Island USA outcomes or announcer comments.
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