The Trump administration has sued Minnesota over its new law banning prediction markets, with the CFTC arguing it oversteps federal jurisdiction and harms regulated markets. The law, which makes operating or advertising prediction markets a felony, is the first state-level outright ban and is set to take effect August 1. The CFTC claims this undermines federal regulatory frameworks and could negatively impact farmers who use similar hedging products.
Background
Prediction markets allow participants to trade contracts based on the outcome of future events, which have been used for hedging risks in agriculture and other industries. The CFTC has regulatory authority over these markets at the federal level in the United States.
- Source
- Ars Technica
- Published
- May 21, 2026 at 02:20 AM
- Score
- 7.0 / 10