US President Donald Trump said it was “critically important” that the CFTC retain “exclusive authority” over prediction markets, echoing CFTC Chairman Michael Selig in a post on Truth Social, his social media platform, on Tuesday afternoon.
“Under my leadership, we are establishing ‘rules of conduct’ that are the benchmark for states,” he said. “We can’t let SCUM like Chris Christie, Letitia James, Tim Walz and JB Pritzker make the rules!”
Former New Jersey Governor Chris Christie repeatedly defended states’ power to regulate gambling products, which he compared to prediction markets.
New York Attorney General Letitia James also filed suit, alleging that certain prediction markets violated state gambling laws; Illinois, led by Governor JB Pritzker, sent a cease and desist message; and Minnesota Governor Tim Walz signed legislation last week imposing criminal penalties for operating prediction markets.
The CFTC, led by Selig as the agency’s sole commissioner, has filed lawsuits and amicus briefs against various states, including those linked to the officials Trump mentioned, defending its jurisdiction over prediction markets.
At the heart of the dispute is the question of whether prediction market contracts related to sports and entertainment are in reality simply gaming products disguised as a new financial instrument. The CFTC has taken the position that all prediction market contracts offered by regulated Designated Contract Markets (DCMs) fall within its jurisdiction and that states do not have the right to infringe on this.
States, in turn, have taken the position that these contracts actually constitute gambling and therefore should be overseen by gambling regulators or banned altogether in states that do not permit such products.
The court cases have been taken all the way to the federal appeals court level, and the issue will likely go to the U.S. Supreme Court at some point.
Beyond the States
“Other countries are seeking this new form of financial market and we want to stay at the top,” Trump’s message continued.
A number of countries have recently banned prediction markets from operating within their borders, including Indonesia, Spain and India last week.
The US government is also investigating prediction markets, with a House committee investigation confirmed last week.
Over the weekend, The New York Times reported that the CFTC, under former Acting Chair Caroline Pham, sidelined agency officials who had raised concerns about approving crypto and other companies — particularly with ties to Trump’s family businesses — that had sought DCM approval.
Neither the CFTC nor a spokesperson for Moonpay, Pham’s current company, immediately responded to a request for comment on the article.
Trump’s family has ties to various prediction market providers, with Donald Trump Jr., one of the president’s sons, serving as an advisor to Polymarket and Kalshi. Gemini, the crypto exchange launched by Cameron and Tyler Winklevoss, both public Trump supporters, also launched a prediction market platform and filed for self-certification of parlay contracts late last week.
Trump also referenced his campaign promise to make the United States the “crypto capital” in his message on Wednesday.
“Similarly, and more importantly, where we are currently the crypto capital of the world (Bitcoin, etc.), other countries are diligently trying to replace us in that capacity, but we will not let that happen,” he said.
UPDATE (May 26, 2026, 9:56 p.m. UTC): Add links everywhere.
