Trump Endorses CFTC as Sole Regulator of Prediction Markets
President Donald Trump has publicly voiced his support for the Commodity Futures Trading Commission maintaining "exclusive authority" to regulate prediction markets as various state-level actions against these platforms continue to escalate.
President Donald Trump has expressed his support for the Commodity Futures Trading Commission maintaining "exclusive authority" to regulate prediction markets, even as regulatory actions from state governments against these platforms continue to increase.
"It is critically important that the CFTC's exclusive authority over Prediction Markets is maintained, and that they will thrive," Trump posted to his social media platform Truth Social on Tuesday.
The President also criticized multiple state officials whose jurisdictions have initiated legal proceedings against prediction market platforms, which include Kalshi, Polymarket, Crypto.com and Robinhood.
"Under my leadership, we are setting 'rules of the road' that are the Gold Standard for the States," Trump wrote. "We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!"
Several state regulatory authorities have taken the position that prediction markets are operating in violation of state legislation by providing gambling services without proper licensing, leading them to file lawsuits or issue cease-and-desist orders against numerous platforms.
Prediction market platforms like Kalshi have filed lawsuits against different state authorities in an effort to defend against legal challenges, asserting that they fall under the sole regulatory purview of the CFTC.
Mike Selig, the Chair of the CFTC, has similarly challenged the states' position, maintaining that his agency holds "exclusive jurisdiction" over prediction markets as they are federally regulated designated contract markets.
The federal agency has filed legal action against multiple states, including Minnesota, Illinois, New York and Arizona for pursuing enforcement actions against prediction market platforms.
In his post, Trump stated that "other Countries are after this new form of Financial Market, and we want to remain at the top."
"It is a major Industry, and we must protect it," he added.
In a previous statement last month, Trump indicated to reporters he was "not happy" with prediction markets and was "never much in favor" of them when responding to questions about suspiciously well-timed bets placed on the platforms regarding events connected to the Iran war, which has prompted criticism from several Democrats who have called for stricter measures.
Trump, whose son Donald Trump Jr. is invested in and on the advisory board for Polymarket and is also an adviser to Kalshi, softened his stance on prediction markets days later, saying the US would "get left out in the cold" if it didn't allow the platforms.
In March, the CFTC established an advisory team to oversee the listing and trading of event contracts and to ensure that market participants satisfy anti-manipulation, surveillance and market integrity requirements.
It claimed that prediction markets fall within the CFTC's existing derivatives framework under the Commodity Exchange Act.