Minnesota has enacted a law taking effect Aug. 1 that makes it a crime to operate, host, promote, or advertise prediction market platforms in the state. Kalshi has sued Minnesota, arguing the law is unconstitutional because the Commodity Futures Trading Commission has exclusive jurisdiction over such event-based contracts under the Commodity Exchange Act, making the state restriction federally preempted. The lawsuit follows a May 19 CFTC motion and adds to the broader dispute over whether states can restrict prediction market activity overseen at the federal level.