Court halts Minnesota’s prediction market ban before August 1 start

Kalshi and Polymarket obtained a temporary court order that is stopping Minnesota from applying its ban on prediction markets, enabling two of the fastest growing trading services to keep operating as the sector record-high growth.

The ruling will have wider implications for cryptocurrency. Polymarket performs onchain margin settlement using stablecoin. In addition, cryptocurrency-related trades account for a significant proportion of the trading carried out by both companies above.

Therefore, the state-level ban will not only affect two companies— it will also determine how far states can go in regulating the markets that increasingly intertwine with digital assets at a time when regulators are still trying to determine whether prediction markets are subject to the regulation of derivatives law or fall under gambling regulations.

Why a state ruling reaches into crypto

Prediction markets allow people to get involved in trading through contracts related to future events. The cost of the contracts reflects the probability of the prediction happening, as stated by Pew Research Center.

… Continue reading the full article at the original source below.