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CFTC Sues Minnesota, Bringing Prediction Markets Preemption Fight To Six States
The CFTC filed suit against Minnesota in federal district court on May 19, 2026, marking the agency’s sixth lawsuit in seven weeks against a state seeking to regulate or prohibit CFTC-registered prediction markets. Filed one day after Minnesota’s governor signed a first-in-the-nation ban into law, the complaint argues that the state’s criminalization of prediction market operators is preempted by the Commodity Exchange Act and violates the U.S. Constitution.
Sheppard, Mullin, Richter & Hampton LLP