Prediction markets: Odds are Washington claims supremacy
Prediction markets have wandered into the middle of a fresh constitutional fight.
TL;DR
- Minnesota has banned prediction markets, classifying them as gambling.
- The federal Commodity Futures Trading Commission (CFTC) sued Minnesota, arguing prediction markets are federally regulated financial instruments.
- The CFTC's action invokes the supremacy clause, asserting national law overrides state rules.
- The core issue is the conflict between a state's reserved powers and federal regulatory authority.
- The article criticizes the federal government's tendency to assert supremacy in conflicts.