Trump backs CFTC authority over prediction markets

US President Donald Trump has backed the Commodity Futures Trading Commission as having the “exclusive authority” over prediction markets, as state regulators' action against the platforms mounts.“It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive,” Trump posted to his social media platform Truth Social on Tuesday.Trump also took aim at several officials whose states have launched legal action against prediction markets, including Kalshi, Polymarket, Crypto.com and Robinhood.“Under my leadership, we are setting ‘rules of the road’ that are the Gold Standard for the States,” Trump wrote. “We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!”Source: Donald TrumpMultiple state authorities have argued that prediction markets are violating state laws by offering gambling without a license, and have sued or issued cease-and-desist orders to multiple platforms.Prediction markets such as Kalshi have sued various state authorities to fend off legal action, claiming it is regulated solely by the CFTC.CFTC Chair Mike Selig has also opposed the states, arguing his agency has “exclusive jurisdiction” over prediction markets as federally regulated designated contract markets.The agency has sued several states, including Minnesota, Illinois, New York and Arizona for taking action against prediction markets.Trump said in his post that “other Countries are after this new form of Financial Market, and we want to remain at the top.”“It is a major Industry, and we must protect it,” he added.Last month, Trump told reporters he was “not happy” with prediction markets and was “never much in favor” of them in response to a question about well-timed bets on the platforms on events linked to the Iran war, which has drawn the ire of several Democrats who have called for stricter measures.Related: Hyperliquid launches prediction markets for real-world events Trump, whose son Donald Trump Jr. is invested in and on the advisory board for Polymarket and is also an adviser to Kalshi, softened his stance on prediction markets days later, saying the US would “get left out in the cold” if it didn’t allow the platforms.In March, the CFTC established an advisory team to oversee the listing and trading of event contracts and to ensure that market participants satisfy anti-manipulation, surveillance and market integrity requirements.It claimed that prediction markets fall within the CFTC’s existing derivatives framework under the Commodity Exchange Act.Magazine: How to fix suspected insider trading on Polymarket and KalshiCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.