Trump Supports CFTC’s Authority Over Prediction Markets Amid Legal Challenges
U.S. President Donald Trump emphasized the «critical importance» of the CFTC retaining «exclusive authority» over prediction markets, aligning with CFTC Chair Michael Selig in a post shared on Truth Social, his social media platform, late Tuesday. «Under my leadership, we are establishing ‘rules of the road’ that set the Gold Standard for the States,» he wrote. «We cannot allow SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker to dictate the rules!»
Former New Jersey Governor Chris Christie has frequently defended the rights of states to oversee gambling products, which he equates with prediction markets.
New York Attorney General Letitia James has filed lawsuits claiming that certain prediction markets breach state gambling regulations; Illinois, under Governor J.B. Pritzker, issued a cease-and-desist order; and Minnesota Governor Tim Walz recently enacted a law imposing criminal penalties for operating prediction markets.
The CFTC, under Selig’s leadership as the sole commissioner, has initiated lawsuits and submitted amicus briefs against various states, including those linked to the officials mentioned by Trump, asserting its jurisdiction over prediction markets.
At the core of the legal conflict is whether prediction market contracts associated with sports and entertainment are merely gambling products masquerading as innovative financial instruments. The CFTC maintains that all prediction market contracts offered by regulated designated contracts markets (DCMs) fall under its jurisdiction, asserting that states cannot encroach on this authority.
States, in contrast, argue that these contracts constitute gambling and should therefore be overseen by state gaming regulators or entirely banned in jurisdictions that prohibit such products.
The legal battles have escalated to the federal appellate court level, and the matter is expected to reach the U.S. Supreme Court eventually.
Looking Beyond States
«Other countries are pursuing this new type of financial market, and we aim to stay at the forefront,» Trump’s post continued.
Recently, several nations have prohibited prediction markets from operating within their territories, including Indonesia, Spain, and India over the past week.
The U.S. government is also investigating prediction markets, with a House of Representatives committee investigation confirmed last week.
Over the weekend, The New York Times reported that the CFTC, under former Acting Chairman Caroline Pham, sidelined agency officials who expressed concerns about endorsing crypto and other companies — particularly those linked to Trump’s family businesses — that sought DCM approvals.
Neither the CFTC nor a spokesperson for Moonpay, Pham’s current firm, immediately responded to a request for comment regarding the article.
Trump’s family has connections to various prediction market providers, with Donald Trump Jr., one of the president’s sons, serving as an adviser to both Polymarket and Kalshi. Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, both known Trump supporters, also launched a prediction market platform and filed to self-certify parlay-type contracts late last week.
Trump also referenced his campaign promise to position the U.S. as the «crypto capital» in his Wednesday post. «Likewise, and even more importantly, where we currently hold the title of the Crypto (Bitcoin, etc.) Capital of the World, other countries are striving to take our place, but we will not allow that to occur,» he wrote.
UPDATE (May 26, 2026, 21:56 UTC): Adds links throughout.