President Trump is backing the Commodity Futures Trading Commission (CFTC) in a dispute over who should regulate prediction markets. In a Tuesday post on Truth Social, Trump says it is “critically important” that the CFTC’s “exclusive authority” over prediction markets is maintained. He also argues that the CFTC should “set rules of the road” for states, and criticizes state officials whose jurisdictions have moved against the platforms. Multiple outlets report that Trump’s comments align with CFTC Chair Michael Selig’s position that the agency has “exclusive jurisdiction” over prediction markets that operate as federally regulated designated contract markets.
The conflict centers on state regulators’ legal actions and enforcement efforts. States have argued prediction markets violate local gambling or related laws and have issued cease-and-desist orders or sued platforms. Platforms including Kalshi have reportedly challenged state actions, contending they are regulated solely by the CFTC. In turn, the CFTC has pursued cases against states including Minnesota, Illinois, New York, and Arizona over their attempts to regulate or restrict prediction market activity. The broader debate in the GOP has continued to split along lines over federal versus state oversight, with Trump publicly siding with federal authority.
