everything CoinDesk has sued Minnesota in federal court to block a state law prohibiting the operation and promotion of prediction markets within its borders, effective August 1. I mentioned Friday (May 29).
The company says in its lawsuit that the Minnesota law violates Minnesota law Commodity Futures Trading CommissionAccording to the report, the CFTC has exclusive jurisdiction over designated contract markets (DCMs) and violates First Amendment protections for advertising.
Minnesota Attorney General’s Office Keith Ellison He said Local news KSTP station said that the office is reviewing the lawsuit and will respond to it in court.
“I am deeply concerned about the harm prediction markets are having on Minnesotans,” Ellison said in a statement reported by KSTP. “Prediction markets are designed to be addictive and prey especially on young people and low-income people.”
PYMNTS reported on May 21 that when Minnesota Gov. Tim Waltz After signing the bill, Minnesota became the first state in the country to enact a law Prediction market ban Platforms from working within their borders.
Minnesota State Representative Emma GreenmanThe Democratic sponsor of the legislation, He said Minnesota Public Radio News: “We as a state must decide how best and what regulations we believe should be attached to gambling, to protect public safety, and to protect our children.”
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The Commodity Futures Trading Commission (CFTC) said on May 19 press release They sued the state of Minnesota to block the law. The state law undermines the federal regulatory system that Congress created more than 50 years ago, the regulator said.
“Minnesota farmers have relied on critical hedging products on weather and crop-related events for decades to mitigate their risks,” the CFTC Chairman said. Michael S. Selig he said in the release. “Governor Walz has chosen to put special interests first and America’s farmers and innovators last.”
In another recent move, Kalci said on May 22 press release They support a new advocacy organization called Americans for Fair Markets (AFM) which aims to shape federal policy on prediction markets and federally regulated exchanges.
“Millions of Americans have shown that they want regulated, open, and fair prediction markets — and we will make sure they have access to them.” John BivonaAFM Board Member and Kalshi Head of Government Relations said in the statement.
