The Trump administration, through the Commodity Futures Trading Commission (CFTC), sues Minnesota over the state’s new law restricting prediction markets. Multiple outlets report that Minnesota Gov. Tim Walz signs the bill earlier this week, and that the law makes it a felony to create, operate, or advertise prediction markets within the state. The ban is scheduled to take effect Aug. 1. The administration argues the Minnesota law conflicts with federal law and that the CFTC has exclusive jurisdiction over platforms and products such as prediction markets. Several reports note that the CFTC has recently pursued similar litigation against states that seek to regulate or limit prediction market activity locally. In its lawsuit, the CFTC seeks to block enforcement of the Minnesota measure, contending the state is effectively criminalizing derivatives contracts. Outlets also reference that federal authorities include the Department of Justice alongside the CFTC, according to descriptions of the legal challenge. The suits reflect an ongoing dispute over whether states can regulate prediction markets or whether federal oversight under existing commodities and derivatives frameworks is controlling.