U.S. District Judge Katherine Menendez issued a temporary injunction on July 27, halting Minnesota’s enforcement of a law that would prohibit the creation, operation and advertising of prediction markets by CFTC‑regulated platforms Kalshi and Polymarket US. The order prevents the state from applying the ban while the case proceeds. Minnesota’s regulation, scheduled to take effect on August 1, classifies certain event contracts as prohibited and imposes criminal penalties for violations. The plaintiffs, including Kalshi and Polymarket US, argued that the Commodity Exchange Act preempts the state statute. Judge Menendez concluded that the plaintiffs were likely to succeed on the claim that the federal law grants the Commodity Futures Trading Commission exclusive authority over transactions involving swaps on designated contract markets. She noted that several event contracts offered by the platforms appeared to meet the legal definition of a swap. The injunction therefore maintains the status quo, allowing the platforms to operate in Minnesota pending further adjudication. The judge warned that the order could be modified if the plaintiffs fail to demonstrate that every contract listed meets the swap definition. The litigation will continue to determine whether the Minnesota ban remains enforceable.