Trump Backs CFTC Control Over Prediction Markets Amid Growing State Pushback

U.S. President Donald Trump has publicly supported the Commodity Futures Trading Commission (CFTC) in its battle to maintain exclusive oversight of prediction markets, intensifying an ongoing legal and political dispute over whether these platforms should be treated as financial instruments or online gambling products.

In a post shared Tuesday on Truth Social, Trump said it was “critically important” for the CFTC to retain sole authority over prediction markets. He echoed comments made by CFTC Chair Michael Selig, arguing that federal regulators should establish consistent national standards instead of allowing individual states to create separate rules.

Trump criticized several state officials, including former New Jersey Governor Chris Christie, New York Attorney General Letitia James, Minnesota Governor Tim Walz, and Illinois Governor J.B. Pritzker. Christie has repeatedly argued that prediction markets resemble gambling and should remain under state control. Meanwhile, James has filed lawsuits claiming some prediction market platforms violate New York gambling laws. Illinois regulators previously issued cease-and-desist orders, while Minnesota recently approved legislation introducing criminal penalties for unauthorized prediction market operations.

Illinois Governor Pritzker responded on Bluesky, claiming the state acted to stop insider trading risks linked to online prediction markets. He also accused Trump and his allies of benefiting financially from weakened state oversight.

The legal conflict centers on whether sports- and entertainment-based prediction contracts qualify as regulated financial products or illegal gambling. The CFTC maintains that prediction markets offered by federally regulated designated contract markets (DCMs) fall entirely under federal jurisdiction. Several states disagree, insisting they have the right to regulate or ban such activity.

The dispute has already reached federal appellate courts and could eventually be decided by the U.S. Supreme Court.

International pressure is also increasing. Countries including India, Spain, and Indonesia recently restricted or banned prediction market platforms. At the same time, the U.S. House of Representatives has launched investigations into the industry.

Trump’s family also maintains close connections to the sector. Donald Trump Jr. serves as an adviser to prediction market firms Polymarket and Kalshi, while crypto exchange Gemini recently introduced its own prediction market platform.

Trump additionally reaffirmed his commitment to making the United States the global leader in cryptocurrency and digital finance, warning that other countries are attempting to challenge America’s dominance in the crypto industry.