Kalshi dey sue Minnesota over ban on prediction markets

Kalshi don file federal lawsuit wey dem dey challenge Minnesota new law wey go make am crime to run, host, or promote prediction markets for the whole state from Aug 1. The law dey target the market’s “event contracts,” one structure wey Kalshi dey rely on well well. Kalshi talk say the law dey violate US Constitution for two reasons. First, dem talk say the bill dey interfere with CFTC’s federal “exclusive jurisdiction” under the Commodity Exchange Act, and e go cause conflict with federal oversight of derivatives for designated contract markets. Second, dem say the restrictions dey unlawfully curb prediction market advertising under the First Amendment. This case follow quick federal action: CFTC file motion on May 19, one day after Gov. Tim Walz sign the bill, warning say the state framework dey conflict with federal regulation. For the same time, President Trump talk public say CFTC suppose keep sole authority over prediction markets, wey match with CFTC Chair Michael Seligl. This new lawsuit na continuation of wider legal fight. Kalshi don already get similar preliminary injunctions wey stop enforcement for New Jersey and Arizona. E still come as prediction markets dey face plenty scrutiny, including bans for other countries and one US investigation dey look if government workers fit don trade using nonpublic information. For crypto traders, dis one na regulatory headline about prediction market platforms and event contracts, no be about tokens, but e fit affect sentiment about the sector’s onshore compliance risk and how e dey fit with derivatives-like trading structures.