Trump Endorses CFTC Control of Prediction Market Platforms

crypthub

about 21 hours ago

Federal Oversight Claim

President Trump said the CFTC should retain exclusive authority over prediction markets, rejecting state lawsuits. He claims these platforms are emerging financial products, not gambling, and need federal oversight. He warned that heavy state restrictions could leave the U.S. trailing other countries.

Legal Battle Over Classification

The dispute hinges on whether prediction markets are regulated derivatives under the Commodity Exchange Act or illegal betting. Firms like Kalshi and Polymarket argue they fall under CFTC jurisdiction, and the agency has sued states such as New York and Illinois for interference. The CFTC chair has affirmed exclusive federal control.

Political and Economic Stakes

Trump framed the issue as a global fintech race, saying strict limits would hurt U.S. innovation. After criticism over timed bets, he softened his stance, warning the U.S. could be “left out in the cold.” His son, Donald Jr., holds investments and advisory roles in several prediction‑market companies.