President Donald Trump jumped squarely into the growing legal and political fight over prediction markets Tuesday night, declaring it was "critically important" for the Commodity Futures Trading Commission to maintain "exclusive authority" over the rapidly expanding industry.
In a lengthy Truth Social post, Trump praised CFTC Chairman Michael Selig and blasted state officials who have challenged companies like Kalshi, Polymarket, Robinhood and Crypto.com over sports-event contracts and other prediction-style trading products.
"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!"
The comments mark one of Trump's strongest public endorsements yet of prediction markets and the CFTC's aggressive legal position that federally regulated event contracts fall under federal commodities law -- not state gambling law.
The statement also comes as prediction market platforms face mounting legal scrutiny across the country.
Trump Blasts Those Seeking To Halt Prediction Markets
New York Attorney General Letitia James has filed lawsuits alleging some prediction market offerings violate state gambling laws. Illinois regulators issued cease-and-desist orders. Minnesota recently became the first state to effectively ban prediction markets through legislation rather than litigation after Gov. Tim Walz signed a bill imposing criminal penalties tied to the products.
Former New Jersey Gov. Chris Christie, meanwhile, has repeatedly argued states should retain authority over gambling-style products operating within their borders. He represents the American Gaming Association, a legacy gambling trade group opposed to prediction market apps.
The CFTC -- now led solely by Selig -- has countered with lawsuits and amicus briefs defending federal jurisdiction over regulated designated contract markets (DCMs), arguing states cannot interfere with products approved under the Commodity Exchange Act.
At the center of the dispute is a massive unanswered legal question: Are sports-event contracts legitimate financial instruments or simply sports betting repackaged as trading?
States largely argue the products amount to gambling and should therefore fall under state gaming laws. The CFTC and prediction market operators insist the contracts are federally regulated derivatives products that belong exclusively under federal oversight.
The issue is already climbing through federal courts and increasingly appears headed toward eventual U.S. Supreme Court review.
Trump's comments could add major political weight to the federal side of that argument.
The president also framed prediction markets as part of a broader global competition tied to crypto and financial innovation.
"Other Countries are after this new form of Financial Market, and we want to remain at the top," Trump wrote. "Likewise, and 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."
That rhetoric comes as several countries -- including Spain, Indonesia and India -- have recently cracked down on or blocked certain prediction market operations.
At the same time, prediction markets are drawing scrutiny inside Washington as well.
Bi-Partisan Calls For Prediction Market Regulation In Congress
A House committee investigation into the industry was confirmed last week, while The New York Times recently reported that former acting CFTC Chair Caroline Pham allegedly sidelined agency staffers who raised concerns about approving certain crypto-linked firms tied to Trump allies or family interests.
Trump's family already has multiple connections to the sector.
Donald Trump Jr. serves as an adviser to both Kalshi and Polymarket. Gemini, the crypto exchange founded by Trump supporters Cameron and Tyler Winklevoss, recently launched its own prediction market platform and filed to self-certify parlay-style contracts.
Trump Media & Technology Group also announced plans last year to integrate prediction markets into Truth Social through a partnership with Crypto.com.
The political positioning is notable because Trump himself has expressed discomfort with the broader explosion of gambling and predictive betting markets.
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Trump Bemoaned World Becoming 'Casino' In April
Speaking in April about prediction markets tied to the Iran conflict, Trump told reporters he was uneasy with the direction of the industry.
"The whole world, unfortunately, has become somewhat of a casino," Trump said in the Oval Office. "I was never much in favor of it. I don't like it conceptually, but it is what it is now."
Trump also addressed the Justice Department's insider-trading-style case against U.S. special forces soldier Gannon Ken Van Dyke, who allegedly used confidential information tied to a Venezuela operation to profit nearly $400,000 on Polymarket.
Trump compared the situation to Pete Rose betting on baseball.
"That's like Pete Rose betting on his own team," Trump said. "Now, if he bet against his team, that would be no good."
Still, despite those reservations, Trump's latest Truth Social post leaves little doubt where his administration stands in the escalating fight between federal regulators and states over the future of prediction markets.
