The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Minnesota to prevent the enforcement of a new state law that criminalizes the operation or assistance in operating prediction markets. The CFTC argues that Minnesota, a key agricultural state, is attempting to criminalize transactions in several CFTC-regulated markets, including weather-related event contracts, through what it describes as the most aggressive state-level legislation to date. CFTC Chairman Michael S. Selig warned that the law could turn legitimate prediction market operators and participants into felons overnight.
This legal action follows similar lawsuits by the CFTC against Arizona and New York. In Arizona, a federal court has already issued a preliminary injunction to stop the state from prosecuting prediction market operators under gambling laws.
CFTC Sues Minnesota to Block New Law Criminalizing Prediction Markets
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