BlockBeats reports that on May 29, the prediction market platform Kalshi has filed a lawsuit in federal court against a new Minnesota statute. This law stipulates that starting August 1, operating, hosting, or promoting prediction market platforms in the state will be classified as a criminal offense.

This lawsuit closely follows the motion filed by the CFTC on May 19. Just a day after Minnesota Governor Tim Walz signed the law, the CFTC argued that the state law attempts to criminalize federally regulated prediction markets at the state level, which violates the U.S. Constitution.

Kalshi further stated in the complaint that this law violates the "Supremacy Clause" of the US Constitution. The federal Commodity Exchange Act (CEA) has granted the CFTC "exclusive jurisdiction" over derivatives and swap trading on designated contract markets (DCM).