{"id":35612,"date":"2026-07-28T05:03:55","date_gmt":"2026-07-28T05:03:55","guid":{"rendered":"https:\/\/bitunikey.com\/news\/kalshi-and-polymarket-win-minnesota-injunction\/"},"modified":"2026-07-28T05:04:17","modified_gmt":"2026-07-28T05:04:17","slug":"kalshi-and-polymarket-win-minnesota-injunction","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/kalshi-and-polymarket-win-minnesota-injunction\/","title":{"rendered":"Kalshi and Polymarket win Minnesota injunction"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">A U.S. federal judge on July 27 granted Kalshi, Polymarket US and the Commodity Futures Trading Commission preliminary relief from Minnesota\u2019s prediction market ban. <\/p>\n<div id=\"cn-block-summary-block_180e8c0f5f5a7a40e3e777fef127148b\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Judge Katherine Menendez blocked Minnesota\u2019s prediction market law before its August 1 effective date statewide.<\/li>\n<li>The injunction protects CFTC-registered contract markets while three lawsuits continue toward final decisions on merits.<\/li>\n<li>Minnesota may seek narrower enforcement because the judge questioned whether every event contract qualifies legally.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Judge Katherine Menendez barred officials from enforcing Minnesota Statute 609.7615 against entities registered with the CFTC as designated contract markets. The <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/fingfx.thomsonreuters.com\/gfx\/legaldocs\/jnvwzbbqwpw\/07272026minnesota.pdf\" target=\"_blank\" rel=\"nofollow\">July 27 order<\/a> arrived five days before the law\u2019s August 1 start date and remains effective until the court reaches a final decision.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-x wp-block-embed-x\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The ruling is in\u2026. the judge granted the CFTC&#8217;s request to block Minnesota&#8217;s ban on prediction markets from going into effect, pending further litigation. Win for the Trump admin &amp; CFTC, Kalshi, Polymarket, etc. A loss for the Minnesota legislature, Gov. Walz, etc. <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/9lRdyWi6I1\">https:\/\/t.co\/9lRdyWi6I1<\/a><\/p>\n<p>\u2014 Marshall Cohen (@MarshallCohen) <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/x.com\/MarshallCohen\/status\/2081850390681719264?ref_src=twsrc%5Etfw\">July 27, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Minnesota\u2019s measure would make creating, operating or facilitating a covered prediction market a felony. It would also criminalize certain support, data and payment services, as well as advertising products that promote prohibited transactions. The <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.revisor.mn.gov\/bills\/94\/2025\/0\/SF\/3432\/versions\/latest\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"nofollow\">state statute<\/a> covers markets tied to sports, elections, government action, legal cases, popular culture and several other events. It was the first state measure designed to prohibit prediction markets directly, rather than applying an existing gaming law to selected contracts.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\"><strong>Kalshi and Polymarket won on federal preemption<\/strong><\/h2>\n<p>Menendez found that the plaintiffs were likely to succeed, at least partly, on their express-preemption claims. The Commodity Exchange Act gives the CFTC \u201cexclusive jurisdiction\u201d over swaps traded on federally registered contract markets. The judge concluded that Minnesota\u2019s across-the-board prohibition would probably reach many transactions reserved for federal oversight.<\/p>\n<p>The court also found that the plaintiffs faced irreparable harm and that the balance of harms supported temporary relief. However, the ruling is not a final judgment that Minnesota\u2019s law is invalid. Menendez described it as a preliminary assessment intended to preserve the existing position while the cases proceed. She did not decide the companies\u2019 implied-preemption or First Amendment claims.<\/p>\n<h2 class=\"wp-block-heading\"><strong>The temporary injunction could become narrower<\/strong><\/h2>\n<p>The injunction protects CFTC-registered designated contract markets rather than every prediction market or event contract provider. Kalshi and QCX LLC, which operates as Polymarket US, are parties in separate cases considered alongside the federal government\u2019s challenge during the preliminary-injunction process.<\/p>\n<p>Menendez also rejected the idea that registration alone resolves every contract\u2019s legal status. She said the plaintiffs had not shown that every event contract on the two platforms meets the federal definition of a swap. A weather or crop contract may have an economic consequence, while some sports propositions may not. Permanent relief could therefore cover fewer products than the current injunction.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Minnesota will continue defending its ban<\/strong><\/h2>\n<p>Minnesota Attorney General Keith Ellison said he disagreed with the decision and would continue defending the law. He described prediction markets as gambling and argued that Minnesota may protect residents from unlicensed activity. Kalshi said the ruling confirmed that states cannot ban products outside their jurisdiction, while Polymarket also welcomed the order.<\/p>\n<p>The Minnesota result does not settle the wider state-federal dispute. Massachusetts, Michigan, Nevada and Washington have obtained orders restricting parts of Kalshi\u2019s activity. In related coverage, Kalshi and Polymarket lost bids to halt proceedings in Nevada and Washington, while a separate Michigan order temporarily restricted Kalshi\u2019s sports contracts.<\/p>\n<h2 class=\"wp-block-heading\"><strong>CFTC rules could shape what happens next<\/strong><\/h2>\n<p>The three Minnesota lawsuits now move toward final decisions on the merits. The injunction keeps the challenged criminal provisions from applying to CFTC-registered contract markets during that process. The court may later examine specific contract categories and decide whether federal preemption protects all, some or none of them.<\/p>\n<p>A parallel CFTC rulemaking may also define the boundary. The regulator\u2019s June proposal would create a contract-by-contract process for reviewing event contracts involving gaming, war, terrorism, assassination or unlawful conduct. Its public-comment period closed on July 27. As previously reported, the proposed framework could directly affect Kalshi and Polymarket by establishing formal public-interest tests for listed contracts.<\/p>\n<p>Earlier on July 27, the CFTC had asked the court to rule before the August 1 deadline and indicated that it could seek emergency appellate relief if no decision arrived. Kalshi and Polymarket joined that request. The injunction removed that immediate deadline, but Minnesota\u2019s attorney general has made clear that the underlying jurisdiction dispute will continue.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>A U.S. federal judge on July 27 granted Kalshi, Polymarket US and the Commodity Futures Trading Commission preliminary relief from Minnesota\u2019s prediction market ban. Summary Judge Katherine Menendez blocked Minnesota\u2019s&hellip;<\/p>\n","protected":false},"author":1,"featured_media":28018,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-35612","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/35612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=35612"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/35612\/revisions"}],"predecessor-version":[{"id":35613,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/35612\/revisions\/35613"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/28018"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=35612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=35612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=35612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}