Donald Trump backs federal control of prediction markets as CFTC battles states in court

US President Donald Trump has renewed support for federal oversight of prediction markets while the Commodity Futures Trading Commission (CFTC) pursues court action against several states.

“It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive,” Trump wrote on Truth Social. “Under my leadership, we are setting ‘rules of the road’ that are the Gold Standard for the States.”

Trump also tied the issue to cryptocurrency policy.

“Likewise, and even more importantly, while 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,” he said.

The US President also called out officials from states that have taken measures against prediction markets. "We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!" he said.

The CFTC has filed lawsuits and amicus briefs against states seeking to regulate or prohibit prediction market platforms. The dispute centers on whether sports and entertainment event contracts qualify as federally regulated financial products or gambling activity governed by state gaming laws.

Federal regulators and industry participants argue that prediction markets operating through federally regulated designated contract markets fall under CFTC jurisdiction. State officials argue that event contract betting resembles gambling and should be supervised by state gaming regulators or prohibited in states where such products are not permitted.

Court cases tied to the issue have already reached the federal appellate level. The dispute is expected to reach the US Supreme Court.

Several states have pursued enforcement action against prediction market operators in recent months.

Tim Walz signed legislation imposing criminal penalties for operating prediction market platforms in Minnesota. The Trump administration later sued to assert the CFTC’s authority over the state.

New York Attorney General Letitia James filed lawsuits alleging that prediction market platforms operated by Coinbase and Gemini violated state gambling laws. The companies maintain that they are regulated at the federal level rather than by individual states.

Illinois Governor J.B. Pritzker also issued a cease-and-desist order tied to prediction market activity. In a post on social media platform Bluesky, Pritzker responded to Trump, saying Illinois had taken "action to prevent and ban insider trading with online prediction markets."

“The most corrupt President in our nation’s history wants to make sure states like ours can’t regulate prediction markets so his family and administration can keep profiting,” Pritzker said.

Former New Jersey Governor Chris Christie has also defended state authority over gambling-related products, including prediction markets.

The debate over prediction markets intensified following a report from The New York Times that said the CFTC under former acting Chair Caroline Pham sidelined agency officials who raised concerns over approvals involving crypto and other firms tied to Trump family business interests.

The report alleged the agency helped advance prediction markets while reducing regulatory enforcement tied to digital currencies.

Trump and members of his family maintain links to companies involved in prediction markets and cryptocurrency ventures.

Donald Trump Jr. serves as an adviser to Polymarket and Kalshi, two companies operating in the event contract sector. Trump family business interests also include crypto venture World Liberty Financial.

Gemini, founded by Cameron and Tyler Winklevoss, recently launched a prediction market platform and filed to self-certify parlay-style contracts. Both are public Trump supporters.

Trump also referred to international restrictions involving prediction markets.

“Other Countries are after this new form of Financial Market, and we want to remain at the top,” he said.

Recent bans on prediction market operations have been reported in Indonesia, Spain, and India.