White House Reviews CFTC Prediction Market Rule as Trump Supports Federal Oversight

The White House has started reviewing a proposed rule from CFTC that could shape how prediction market platforms such as Kalshi and Polymarket operate in the United States.

According to a federal filing, the proposal was submitted to the Office of Information and Regulatory Affairs (OIRA) on May 26 under Executive Order 12866. While the full text of the proposal has not yet been released, the review marks an important step before any major federal regulation becomes official.

The move suggests the CFTC is moving closer to building a wider national framework for event contracts, including markets tied to elections, sports and gaming.

Federal and State Authorities Clash Over Prediction Markets

The proposal arrives after months of legal disagreements between federal regulators and several US states. States including Illinois and New Jersey argue that sports-based event contracts work similarly to online sports betting and should fall under state gambling laws.

However, the CFTC and prediction market platform Kalshi have argued that federally regulated event contracts fall under the agency’s exclusive authority.

Trump Supports CFTC Control Over Prediction Markets

The review also comes shortly after President Donald Trump publicly backed the CFTC’s role in overseeing prediction markets, saying it is important for the agency to maintain exclusive control over the sector.

Earlier this year, the CFTC requested public feedback on whether some event contracts linked to elections, gaming and sports should be restricted if considered against the public interest.