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>>Trump Supports the CFTC as the Exclusive Regulator of Prediction Markets Amid a State Conflict

Trump Supports the CFTC as the Exclusive Regulator of Prediction Markets Amid a State Conflict

crypthub

about 19 hours ago

Presidential Backing

President Donald Trump posted that the CFTC must retain exclusive authority over prediction‑market platforms. He praised new CFTC chair Michael Selig and urged the agency to push federal preemption hard. Trump singled out several governors and AGs, calling them “SCUM,” and framed state opposition as a competitive risk. He also noted his own family’s stake in Truth Predict, a prediction market linked to Crypto.com.

State vs Federal Legal Clash

The CFTC is suing five states—Wisconsin, Illinois, Arizona, Connecticut and New York—arguing that event contracts are commodities, not gambling. A coalition of 39 attorneys general, led by Nevada and Ohio, backs Massachusetts in blocking Kalshi’s sports contracts, insisting Congress never intended to override state gambling laws. Minnesota became the first state to criminalize prediction markets with felony penalties. The core dispute centers on whether these contracts are derivatives or merely gambling products.

Future Outlook

The lawsuits are expected to reach the Supreme Court within 12‑18 months, leaving platforms operating under federal cover for now. Congressional scrutiny is rising, as the House Oversight Committee probes Kalshi and Polymarket for insider‑trading concerns. Trump’s public endorsement gives the CFTC political cover but does not resolve the underlying legal question. The outcome will shape the national landscape for prediction‑market trading.