CFTC Pushes for Emergency Ruling to Halt Minnesota Prediction Market Ban

The CFTC filed an emergency request seeking either a preliminary injunction or a temporary administrative stay to prevent enforcement of the new statute. Governor Tim Walz signed the legislation in May, classifying the operation or advertising of prediction markets as a criminal offense. The regulator contends that this state-level prohibition directly undermines the federal derivatives framework established under the Commodity Exchange Act.

Major trading platforms Kalshi and Polymarket have joined the commission’s effort, filing their own requests for a stay. Both entities and the CFTC have signaled that they will treat the lack of a court decision by July 28 as a constructive denial, potentially triggering an immediate appeal to a higher court. The core of the dispute rests on whether event contracts—which the CFTC views as regulated financial products—can be superseded by state-level gambling restrictions. While Minnesota authorities argue these markets pose risks of financial harm and addiction, the commission maintains that federal jurisdiction must remain paramount to prevent a fragmented regulatory landscape across the United States.