Trump Backs Prediction Markets as Legal Battles Over CFTC Authority Intensify

Donald Trump has publicly backed prediction markets, saying it is “critically important” for the U.S. Commodity Futures Trading Commission (CFTC) to maintain exclusive authority over the growing sector.

In a post on Truth Social, Trump supported the position of Michael Selig, who has argued that federally regulated prediction markets should remain under CFTC oversight rather than state control. Trump said the U.S. is creating a strong regulatory framework and warned against allowing individual states to set different rules.

States challenge prediction market legality

The debate comes as several U.S. states continue legal action against prediction market operators. Officials in New York, Illinois and Minnesota have argued that some event-based contracts resemble gambling products and should be regulated by state gaming authorities.

Letitia James has filed lawsuits claiming certain prediction markets may violate gambling laws, while Illinois issued cease-and-desist orders. Minnesota recently approved penalties for unlicensed prediction market operations.

At the center of the dispute is whether sports and entertainment prediction contracts should be treated as financial instruments or gambling products. The issue has already reached federal appellate courts and could eventually move to the U.S. Supreme Court.

Global pressure grows on prediction markets

Several countries, including India, Spain and Indonesia, have recently restricted prediction market platforms. Meanwhile, the U.S. House of Representatives has also begun reviewing the sector.

Trump also repeated his goal of keeping America a leader in crypto and financial innovation, saying the country should remain the global capital for digital assets.