President endorses federal regulator, attacks state officials pursuing legal action
US President Donald Trump on Tuesday publicly endorsed the Commodity Futures Trading Commission’s exclusive regulatory authority over prediction markets, directly attacking state officials who have pursued legal action against platforms like Kalshi and Polymarket.
“It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive,” Trump posted to Truth Social on May 27, 2026. He added that “other Countries are after this new form of Financial Market, and we want to remain at the top.”
Trump’s statement marks a sharp reversal from his position last month, when he told reporters he was “not happy” with prediction markets and was “never much in favor” of them. Days after that statement, Trump softened his stance, saying the US would “get left out in the cold” if it didn’t allow the platforms to operate.
In his May 27 post, Trump singled out four state officials by name: Chris Christie, Letitia James, Tim Walz, and JB Pritzker. “We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!” he wrote. Trump framed federal oversight as superior, stating: “Under my leadership, we are setting ‘rules of the road’ that are the Gold Standard for the States.”
The statement aligns with CFTC Chair Mike Selig’s position that the agency holds “exclusive jurisdiction” over prediction markets as federally regulated designated contract markets under the Commodity Exchange Act. In March 2026, the CFTC established an advisory team to oversee listing and trading of event contracts and ensure market participants satisfy anti-manipulation, surveillance, and market integrity requirements.
Multiple state authorities have argued that prediction markets violate state laws by offering gambling without a license. The CFTC has responded by suing several states, including Minnesota, Illinois, New York, and Arizona, for taking action against prediction markets. Platforms including Kalshi have also sued various state authorities, claiming exclusive CFTC jurisdiction.
Trump’s endorsement of CFTC authority carries additional weight given his family’s financial ties to the sector. Donald Trump Jr., the president’s son, is invested in Polymarket and sits on its advisory board. He is also an adviser to Kalshi.
Trump emphasized the economic stakes of the regulatory battle. “It is a major Industry, and we must protect it,” he stated, framing federal oversight as necessary to maintain US competitiveness in what he described as an emerging financial market class.
The conflict between state and federal regulators over prediction markets has intensified as platforms have grown in prominence. Last month, Trump’s initial skepticism of prediction markets followed criticism from several Democrats regarding well-timed bets on platforms tied to events linked to the Iran war. His subsequent reversal suggests the administration has concluded that federal regulatory clarity, rather than state-level restriction, serves broader policy objectives.
