TechFlow News, May 29: According to CoinDesk, Kalshi, a prediction market platform, has filed a federal lawsuit challenging a new Minnesota law set to take effect on August 1 that criminalizes operating, hosting, or promoting prediction market platforms. Kalshi argues the law is unconstitutional, asserting it infringes upon the Commodity Futures Trading Commission’s (CFTC) exclusive federal jurisdiction over derivatives markets granted by the Commodity Exchange Act and violates the First Amendment by restricting advertising.
Earlier, on May 19, the CFTC had already filed a motion asserting the state law is unconstitutional. U.S. President Donald Trump has also publicly voiced support for the CFTC’s sole regulatory authority over prediction markets. Kalshi previously secured preliminary injunctions in similar enforcement actions brought in New Jersey and Arizona.
