On May 19, 2026, the Commodity Futures Trading Commission (CFTC) sued the state of Minnesota for trying to regulate prediction markets, in response to a new law that Minnesota Governor Tim Walz signed the day before. The CFTC argued that it has “exclusive jurisdiction” to regulate “Designated Contract Markets (DCMs)”, which include prediction platforms under the Commodity Exchange Act (CEA), contrary to the new Minnesota law, which would make the advertisement, marketing, operation and hosting of prediction markets in Minnesota a felony. The CFTC Suit argues that the CEA “ provides a comprehensive federal framework for the regulation of commodity derivatives transactions in the United States” and gives the CFTC “exclusive jurisdiction” over products like futures, options, and swaps listed on regulated exchanges. The CFTC is seeking a preliminary injunction to stop the law from going into effect on August 1, 2026.