Trump Supports CFTC Oversight of Prediction Markets

Donald Trump said it is “critically important” for the Commodity Futures Trading Commission to hold sole authority over prediction markets and also criticized several state officials.

Donald Trump has backed the Commodity Futures Trading Commission as having “exclusive authority” over prediction markets as actions against the platforms continue to be taken by state regulators.

“It is critically important that the Commodity Futures Trading Commission’s exclusive authority over prediction markets is maintained and that they continue to thrive,” Donald Trump posted on his social media platform Truth Social on Tuesday.

Donald Trump also criticized several officials from states where legal action has been launched against prediction market platforms, including 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!”

Multiple state authorities have argued that prediction markets violate state laws by offering gambling services without a license, leading lawsuits and cease-and-desist orders to be issued against several platforms.

Prediction market platforms such as Kalshi have sued several state authorities to fight back against legal action, arguing that regulation falls solely under the Commodity Futures Trading Commission.

Mike Selig has also opposed the states, arguing that “exclusive jurisdiction” over prediction markets belongs to his agency as federally regulated designated contract markets.

The agency has filed lawsuits against several states, including Minnesota, Illinois, New York and Arizona, over actions taken against prediction markets.

Trump Says US Must Protect Prediction Markets to Stay Globally Competitive#

Trump said in his post 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.

Last month, Donald Trump told reporters he was “not happy” with prediction markets and had “never much been in favor” of them while responding to questions about well-timed bets placed on platforms tied to events related to the Iran war, an issue that has sparked calls from several Democrats for stricter measures.

Donald Trump, whose son Donald Trump Jr. is invested in and serves on the advisory board of Polymarket while also advising Kalshi, later softened his stance on prediction markets, saying the US would “get left out in the cold” if such platforms were not allowed.

In March, an advisory team was established by the Commodity Futures Trading Commission to oversee the listing and trading of event contracts and ensure that market participants comply with anti-manipulation, surveillance, and market integrity requirements.

It claimed that prediction markets are covered under the Commodity Futures Trading Commission’s existing derivatives framework through the Commodity Exchange Act.