The CFTC and the US Department of Justice (DOJ) sued the state of Minnesota and its governor, Tim Walz. The legal action occurred less than 24 hours after the signing of a bill that establishes the first explicit ban on prediction markets in the country, scheduled to take effect on August 1.
The conflict arises because federal authorities allege that Minnesota illegally invades the CFTC’s exclusive jurisdiction over regulated derivatives markets. This case intensifies the clash between state gambling regulators and platforms like Polymarket or Kalshi, further affecting banks and payment processors that support these event contracts.
The next legal step will consist of evaluating a permanent injunction requested by the CFTC to halt the statute. Meanwhile, the crypto market closely watches how this resolution will define the operational framework for blockchain-based prediction platforms within US territory.
Source: https://goo.su/stRR8
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