CFTC Sues Minnesota to Block Law Criminalizing Prediction Markets

The Commodity Futures Trading Commission (CFTC) sued Minnesota on Tuesday to block a new state law that would make operating a prediction market a criminal felony.

Governor Tim Walz signed the legislation, which the CFTC describes as the most aggressive state effort to shut down its regulated markets. The law also criminalizes weather-related event contracts used by farmers.

Follow us on X to get the latest news as it happens

Minnesota’s Law Reaches Further Than Earlier State Actions

The agency is seeking a preliminary injunction to stop the statute from taking effect. Minnesota’s SF 4760 is a public safety bill signed on May 18, 2026. 

Article 8 makes operating prediction markets a felony in Minnesota starting August 1, 2026. It broadly bans wagering platforms covering sports, elections, weather, disasters, legal proceedings, pop culture, and more. 

In addition, creating, operating, facilitating, providing data, or processing payments for such markets is criminalized, as is advertising them. 

The CFTC noted that Minnesota ranks among the largest agricultural producers in the country. The new law directly targets weather-related event contracts, which the agency calls the broadest state reach to date.

“This Minnesota law turns lawful operators and participants in prediction markets into felons overnight. Minnesota farmers have relied on critical hedging products on weather and crop-related events for decades to mitigate their risks. Governor Walz chose to put special interests first and American farmers and innovators last,” CFTC Chairman Michael S. Selig said.

The Minnesota case follows actions against Arizona, Connecticut, Illinois, and New York. A federal court in Arizona recently issued a preliminary injunction blocking that state from using gambling laws to prosecute prediction market operators.

The outcome may shape whether states retain authority to criminalize federally regulated event contracts.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights

The post CFTC Sues Minnesota to Block Law Criminalizing Prediction Markets appeared first on BeInCrypto.