The CFTC filed a lawsuit to block Minnesota's prediction market ban taking effect August 1, asserting federal jurisdiction over event contracts.

While dozens of states have taken legal action against the controversial industry, Minnesota is the first state to pass a law making it a felony for companies like Kalshi and…

“This Minnesota law turns lawful operators and participants in prediction markets into felons overnight,” the CFTC chairman said.

The federal regular is asking for an order that would stop the law from going into effect on Aug. 1, according to the complaint.