Source: Decrypt
A federal judge has temporarily blocked Minnesota's law criminalizing prediction markets, granting a preliminary injunction to Kalshi and Polymarket. The ruling indicates that not all contracts qualify as swaps under federal law.
U.S. District Judge Katherine Menendez issued the injunction against Minnesota's SF 3432, which was set to take effect on Saturday. The judge found that the plaintiffs are likely to succeed on preemption claims and would suffer irreparable harm. The order prevents enforcement against exchanges registered with the CFTC, pending a decision on the law's merits. Menendez noted that certain contracts, such as those related to Senate races and the World Cup, meet the criteria for swaps, while others do not.