[Kalshi Sues Minnesota Government Over Law Criminalizing Prediction Markets] BlockBeats News, May 29: Prediction market platform Kalshi has filed a lawsuit in federal court opposing a new Minnesota law. The 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 follows a motion filed by the U.S. Commodity Futures Trading Commission (CFTC) on May 19. Just one 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. In its complaint, Kalshi further stated that the law violates the "Supremacy Clause" of the U.S. Constitution. This is because the federal Commodity Exchange Act (CEA) grants the CFTC "exclusive jurisdiction" over derivatives and swap transactions on designated contract markets (DCMs). [Original Link]