Judge blocks first state law that would have banned prediction markets
Summary
A federal court blocked Minnesota's law banning prediction markets, preventing an August 1 enforcement date. The decision centers on whether event contracts offered on Kalshi and Polymarket qualify as swaps under the Commodity Exchange Act, potentially giving the CFTC exclusive jurisdiction. The ruling suggests a nuanced regulatory landscape where some forms of prediction-market activity may be restricted while others could be permissible.