CFTC and DOJ Sue Minnesota over Prediction Market Ban, Law Takes Effect August 1

According to The Block, the CFTC and U.S. Department of Justice sued Minnesota Governor Tim Walz on Tuesday, less than 24 hours after he signed bill SF 4760 into law, over legislation that bans prediction markets in the state. The agencies argue that Minnesota is unlawfully attempting to regulate federally overseen derivatives markets under CFTC's exclusive jurisdiction. The lawsuit describes the legislation as "the first outright ban on prediction markets in the U.S." Under the new law, Minnesota prohibits prediction markets that allow customers to wager on outcomes ranging from sporting events to company valuations. The law is set to take effect on August 1.
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