Kalshi sues the state of Minnesota, challenging a law that prohibits the operation of prediction markets.

CoinFeed reported on May 29 that, according to The Block, prediction market platform Kalshi has sued the state of Minnesota, alleging that the state's law banning prediction market operations violates the constitutional supremacy clause. The law, signed by Governor Tim Walz, will take effect on August 1. In its complaint, Kalshi claims the new law classifies prediction markets as "felonies," and that closing its Minnesota operations would harm its viability as a 50-state derivatives exchange. It is seeking a temporary restraining order and an injunction. Less than 24 hours earlier, the CFTC and the Department of Justice had already sued Minnesota and Governor Tim Walz over the same law. CFTC Chairman Michael Selig stated that prediction markets fall under the agency's exclusive jurisdiction, and that the states' "power struggle" ignores the law and decades of precedent.