Federal judge Katherine Menendez pauses Minnesota ban on prediction markets
Business
Minnesota tried to shut down prediction market platforms like Kalshi and Polymarket, but a federal judge stepped in and paused the ban for now.
Judge Katherine Menendez said the state's law might clash with federal rules, so these platforms can keep running in Minnesota until there's a final decision.
The Commodity Futures Trading Commission, or CFTC, had also challenged the ban, backing the platforms.
Judge cites CFTC jurisdiction, irreparable harm
The judge agreed that Minnesota's ban could violate federal law since many prediction market contracts are considered "swaps," which only the CFTC can regulate.
She warned that banning these sites right away would cause "irreparable harm" to their business.