A Polymarket spokesperson said the company looks forward to responding to these claims.
“This action goes against the framework established by the CFTC to regulate prediction markets,” the spokesperson said in an emailed statement to CoinDesk.
So far, states that have filed such a challenge against prediction markets have faced countersuits from the CFTC, where Chairman Mike Selig has taken an aggressive legal stance defending his agency’s authority as the sole regulatory power over event-driven contracts, which he says falls squarely within the CFTC’s authority over U.S. derivatives.
And Trump recently supported it.
“It is extremely important that the CFTC’s exclusive authority over the prediction markets be maintained and that they thrive,” Trump said on his social media site, Truth Social. “Under my leadership, we establish ‘rules of the road’ that provide the benchmark for states.”
He claimed that his political enemies at the state level (offering names such as Minnesota Gov. Tim Walz and Illinois Gov. JB Pritzker) are “SCUMs” who should not be allowed to set the rules.
“This is a major industry and we must protect it,” Trump wrote. “Mike Selig, Chairman of the CFTC and respected by all, is doing an excellent job.”
The CFTC has sued eight states – most recently New Mexico – and has taken on other legal cases involving the industry.
