Trump said the CFTC should retain exclusive authority over prediction markets instead of state gambling regulators nationwide. Prediction market volume surged above $20B monthly as platforms
U.S. President Donald Trump backed the Commodity Futures Trading Commission’s authority over prediction markets on Tuesday, while also defending the broader crypto industry. Trump said the CFTC must retain exclusive control over prediction markets as legal disputes expand across several U.S. states. He also said the United States must protect Bitcoin and crypto development as foreign countries increase competition in digital finance.
https://twitter.com/WuBlockchain/status/2059389156640608329?s=20Trump made the comments in a Truth Social post supporting CFTC Chairman Mike Selig. According to Trump, prediction markets should continue operating under federal oversight instead of state gambling laws.
Trump said the administration is establishing “rules of the road” for the industry. He also described those rules as the “Gold Standard for the States.”
Meanwhile, the CFTC continues fighting multiple legal battles involving prediction markets. According to the provided information, the agency filed cases against Arizona, Connecticut, Illinois, New York, and Wisconsin.
Selig has repeatedly argued that the CFTC holds exclusive jurisdiction over prediction markets. However, several states claim sports-event contracts violate local gambling laws.
That dispute has intensified alongside rapid market growth. Prediction market trading volumes reportedly climbed above $20 billion monthly from nearly $1.2 billion in early 2025.
Prediction platforms including Polymarket and Kalshi expanded fast after the 2024 U.S. presidential election cycle. Notably, Kalshi reportedly reached a $22 billion valuation during a May 2026 funding round.
At the same time, legal pressure against the sector continues growing. Massachusetts led a lawsuit against Kalshi in April alongside 38 state attorneys general, including New York Attorney General Letitia James.
Trump criticized James, Chris Christie, Tim Walz, and JB Pritzker in his statement. He argued that state officials should not shape national prediction market policy.
Alongside prediction markets, Trump also defended the crypto sector during the statement. He described crypto as a “major industry” that the United States must protect.
Trump said other countries are attempting to challenge the United States in Bitcoin and digital assets. He added that the country currently remains the “Crypto Capital of the World.”Meanwhile, criticism around the CFTC also increased this week. Senator Richard Blumenthal accused the agency of favoring crypto and prediction market firms while targeting state regulators.
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