CFTC Sues Minnesota to Block First State Felony Ban on Prediction Markets

CFTC Sues Minnesota to Block First State Felony Ban on Prediction Markets


Prediction-market regulation battle shown through event-contract order books, court filings, and federal market oversight panels. image By Isaac • May 19, 2026 4:48 pm •

The Commodity Futures Trading Commission filed a lawsuit against Minnesota on Tuesday to block a new state law that would make operating or assisting in the operation of a prediction market a criminal felony.

The law was signed by Governor Tim Walz and is set to take effect August 1, 2026.

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The CFTC is seeking a preliminary injunction to stop the ban before that date, calling it a direct threat to federally regulated event-contract markets.

CFTC Chairman Michael Selig put it bluntly on X.

Governor Walz and Minnesota are putting special interests first and American farmers and innovators last.

Minnesota’s new law would make it a felony to trade event contracts in the state, hurting

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