The Commodity Futures Trading Commission (CFTC) sued the state of Minnesota on Tuesday to block a new state law that would make operating a prediction market a criminal offense.
Gov. Tim Walz signed the legislation, which the CFTC calls the state’s most aggressive effort to shut down its regulated markets. The law also criminalizes weather-related event contracts used by farmers.
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The Minnesota law reaches further than previous state actions
The agency is seeking a preliminary injunction to prevent the law from taking effect. Minnesota SF 4760 is a public safety bill I fell On May 18, 2026.
Article 8 makes it operational Prediction markets are a felony in Minnesota as of August 1, 2026. It broadly bans betting platforms that cover sports and elections Weather, disasters and legal Actions, pop culture and more.
In addition, creating, operating, facilitating, providing data or processing payments for such markets is criminalized, as is advertising to them.
The CFTC noted that Minnesota is among the nation’s largest agricultural producers. The new law directly targets contracts for weather-related events, which the agency calls Widest country reach date.
“This Minnesota law turns legal operators and participants of prediction markets into criminals overnight. Minnesota farmers have relied on critical weather- and crop-related event hedging products for decades to mitigate their risks. Governor Walz has chosen to put special interests first and America’s farmers and innovators last,” CFTC Chairman Michael S. He said.
Minnesota The case follows proceedings against Arizona, Connecticut, Illinois, and New York. A federal court in Arizona recently issued a preliminary injunction preventing that state from using its gambling laws to prosecute prediction market operators.
The outcome may determine whether states retain the authority to criminalize federally regulated juvenile contracts.
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this post The Commodity Futures Trading Commission (CFTC) is suing the state of Minnesota to block a law criminalizing prediction markets appeared first on BeInCrypto.
