The U.S. Commodity Futures Trading Commission (CFTC) is pushing for an expedited ruling in its case against Minnesota, as the state’s ban on prediction markets could go into effect later this week. Prediction markets Kalshi and Polymarket have also backed the regulator’s move, as they seek similar injunctive relief.
CFTC Pushes For Expedited Ruling In Case Against Minnesota
The latest court filing shows that the regulator has requested expedited handling of its case against Minnesota. The regulator noted that it is essential to have a resolution with the August 1 effective date drawing near.
The CFTC sued Minnesota in May to block the state law, seeking a preliminary injunction to stop the law from taking effect. Despite a hearing, the Judge has yet to rule on the case. The Commission stated in the filing that it would deem its motion constructively denied if there is no decision or a temporary stay by tomorrow.
The prediction markets regulator also signaled that it will seek interim appellate relief from the Appeals Court if this scenario plays out. The Minnesota law notably criminalizes the operation and advertisement of prediction markets such as Kalshi and Polymarket.
These prediction market platforms had also filed a similar action against the state, seeking injunctive relief. The CFTC revealed in its filing that these platforms have joined in the request for a temporary administrative stay on the challenged law pending the court’s decision on their respective motions for a preliminary injunction.
The Commission added that Kalshi and Polymarket will view their motions as constructively denied and seek appellate relief if there is no decision or temporary stay by tomorrow.
Proposed Prediction Markets Framework Receives Backing
The Hyperliquid Policy Center (HPC) and Multicoin filed a joint comment in support of the CFTC’s proposed framework for prediction markets. They stated that prediction markets should answer to one federal regulator despite state regulators’ claims that these platforms operate unlicensed sports betting platforms through their sport contracts.
The HPC and Multicoin noted that the two products are different. “A bet with a bookmaker is a wager against the house: the house sets the odds and wins when you lose. An exchange-traded contract is a trade between two willing participants at a market price, and the venue’s business is matching that trade for a fee, whichever side wins,” they argued.
They further stated that the structural difference was what prompted Congress to give the CFTC jurisdiction over these contracts. HPC and Multicoin added that forcing these top crypto prediction market platforms to comply with fifty state gambling laws will fragment what Congress meant to unify.
