Trump backs CFTC authority over prediction markets amid regulatory disputes
US President Donald Trump has publicly supported the Commodity Futures Trading Commission’s (CFTC) authority over prediction markets, arguing that the federal regulator should retain exclusive oversight of the sector as legal disputes with state authorities continue to escalate.
In a post published on Truth Social, Trump said it was “critically important” that the CFTC’s authority over prediction markets be maintained, adding that the sector represents an important and growing financial market for the United States.
His comments come as several state regulators have challenged the legality of prediction market platforms, including Kalshi, Polymarket, Crypto.com and Robinhood. State authorities have argued that some event-based contracts offered by these platforms resemble unlicensed gambling products and may violate local laws.
The operators have pushed back against those claims, maintaining that prediction markets fall under federal oversight through the CFTC. Kalshi and other market participants have launched legal challenges against state enforcement actions, while the CFTC has also defended its jurisdiction in several ongoing disputes.
CFTC Chair Mike Selig has previously stated that the agency holds exclusive authority over federally regulated prediction markets and that such contracts operate within the framework established by the Commodity Exchange Act.
Trump argued that maintaining a clear federal regulatory framework is essential for the industry's growth and for preserving the United States' competitive position in emerging financial markets.
The debate around prediction markets has intensified in recent months as regulators, lawmakers and industry participants continue to discuss the distinction between financial event contracts and traditional gambling products. In March, the CFTC established a dedicated advisory group focused on overseeing event contracts and ensuring compliance with market integrity and anti-manipulation requirements.
