Trump Calls For CFTC Exclusivity Over Prediction Markets
By Robert Linnehan in Sports Betting News
Published:
- President Donald J. Trump (R) calls for CFTC regulatory exclusivity over prediction markets
- States should not have control over the prediction markets, he noted
- This comes one month after President Trump said he was “never much in favor of” prediction markets
Prediction markets picked up a big ally in the form of the President of the United States.
President Donald J. Trump (R) took to his Truth Social account late Tuesday and delivered his most stirring comments of approval for prediction markets, supporting the Commodity Futures Trading Commission’s (CFTC) exclusive authority over the markets and praising Mike Selig’s role as chairman of the CFTC.
His comments of support came one month after Trump told the press he was “never much in favor of” prediction markets.
Trump Backs Markets
Trump gave his approval to the markets on Truth Social in the midst of a number of state lawsuits – and one state’s ban of certain prediction market contracts – vying for regulatory control over the financial industry.
“It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive. Under my leadership, we are setting ‘rules of the road’ that are the Gold Standard for the States. We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules! Other Countries are after this new form of Financial Market, and we want to remain at the top. Likewise, even more importantly, where we are currently the Crypto (Bitcoin, etc.) Capital of the World, other Countries are trying diligently to replace us in that capacity, but we won’t let that happen. It is a major industry, an we must protect it. Mike Selig, CFTC Chairman, and respected by all, is doing a great job. Thank you Mike! President DONALD J. TRUMP.”
Trump’s family is ingrained in the prediction market industry. Trump’s son, Donald Trump Jr., is employed as an advisor for Kalshi and is on the advisory board with Polymarket, the two largest prediction market operators in the U.S.
Trump referenced several state figures in his message, most notably Minnesota Gov. Tim Walz (D) who recently signed a bill into law prohibiting certain prediction markets in the state. The legislation prohibits prediction market contracts centered around the following types of markets:
- Events in popular culture, including but not limited to awards and the date a piece of entertainment will be released
- Whether a person will make a particular statement
- An athletic event or game of skill
- Any game played with cards, dice, equipment, or any mechanical or electronic device or machine
- War, state or national emergencies, natural or human-made disasters, mass shooting, acts of terrorism, or public health crises
- Federal, state, or local elections
- Legal actions, including but not limited to a civil or criminal suit, grand jury action, jury trial, settlement, plea, or conviction
- Weather
- Death, assassination, or attempted killings
Letitia James, attorney general of New York, and J.B. Pritzker, governor of Illinois, are both embroiled in lawsuits against prediction market operators as their respective states struggle for regulatory control over prediction markets.
Change of Heart
Trump’s message came about a month after he criticized the markets to the press amidst several incidents of insider trading concerning government actions. Gannon Ken Van Dyke of North Carolina, a service member in the U.S. army, allegedly used classified nonpublic information to generate more than $404,000 in profits through the purchase of more than 436,000 “yes” shares of the “Maduro Out by January 31, 2026?” contract listed on Polymarket.com.
Following the arrest and complaint against Van Dyke, Trump was asked his thoughts about insider trading with event contracts on events such as war.
Trump’s comments were less than positive about the prediction markets.
“Well, you know, the whole world unfortunately has become somewhat of a casino. You look at what’s going on all over the world, in Europe, and every place they’re doing these betting things. I was never much in favor of it, I don’t like it conceptually. It is what it is. I’m not happy with any of that stuff. They have all these different sites, they have predictive market, it’s a crazy world,” he said.
Politicians Fire Back
After Trump published his message on Truth Social, several politicians fired back at the Commander in Chief.
Gov. Pritzker defended his state’s decision to pass legislation to ban insider trading with online prediction markets in the state and criticized Trump’s defense of the markets as means to allow his family to keep profiting off them.
U.S. Sen. Chris Murphy (D-CT), an outspoken critic of states having no say in the prediction market industry, also took shots at Trump’s family being heavily involved in the markets. It is evidence of corruption, he said, as Trump is leading the charge to allow the federal government to have exclusive say over the industry when his family is heavily profiting off of the markets.
Murphy recently introduced the Banning Event Trading on Sensitive Operations and Federal Functions (BETS OFF) Act, a piece of federal legislation banning wagering on government actions and events where individuals know or control the outcome.
The BETS OFF Act, if legalized, will prohibit the follow prediction markets from being offered to consumers:
- An act of terrorism
- An assassination
- An act of war
- Any action taken by the government in which the outcome is under the complete control of any person
- Any action taken by the government in which the outcome is known by any person in advance
Regulatory Writer and Editor
Robert Linnehan covers all regulatory developments in online gambling and sports betting. He specializes in U.S. sports betting news along with casino regulation news as one of the most trusted sources in the country.
