U.S. President Donald Trump emphasized the "critically important" role of the CFTC in maintaining "exclusive authority" over prediction markets, aligning with CFTC Chair Michael Selig's stance in a post shared on Truth Social on Tuesday afternoon.

He noted, "Under my leadership, we are establishing 'rules of the road' that serve as the Gold Standard for the States. We cannot allow people like Chris Christie, Letitia James, Tim Walz, and JB Pritzker to dictate the rules!"

Chris Christie, the former governor of New Jersey, has publicly supported states' rights to regulate gambling products, likening them to prediction markets.

New York Attorney General Letitia James has initiated lawsuits claiming that certain prediction markets breach state gambling laws; Illinois, under Governor JB Pritzker, issued a cease-and-desist order, while Minnesota's Governor Tim Walz recently enacted a law imposing criminal penalties on prediction market operators.

The CFTC, led solely by Selig, has responded by filing lawsuits and amicus briefs against these states, asserting its jurisdiction over prediction markets.

The core of the legal contention revolves around whether prediction market contracts associated with sports and entertainment are merely gambling products disguised as innovative financial instruments. The CFTC argues that all contracts from regulated designated contracts markets (DCMs) fall under its authority, countering state claims that these contracts should be regulated as gambling.

States maintain that such contracts are indeed gambling and should either fall under state gaming regulators or be banned in jurisdictions that do not permit them.

Legal battles have reached the federal appellate court, with the possibility of the U.S. Supreme Court eventually addressing the matter.

Global Context

Trump's post further remarked, "Other countries are pursuing this new form of financial market, and we want to stay ahead."

Several nations, including Indonesia, Spain, and India, have recently prohibited prediction markets from operating within their borders.

The U.S. government is also scrutinizing prediction markets, with a House committee confirming an investigation last week.

Over the weekend, The New York Times reported that the CFTC, during the tenure of former Acting Chairman Caroline Pham, sidelined officials who raised concerns regarding the approval of crypto and other companies—some of which had connections to Trump's family businesses—seeking DCM approvals.

Neither the CFTC nor a representative for Moonpay, where Pham currently works, responded to requests for comment on the article.

Trump's family has connections with various prediction market platforms, as Donald Trump Jr. has served as an adviser to both Polymarket and Kalshi. Additionally, Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss—both known Trump supporters—launched a prediction market platform and recently filed to self-certify parlay-type contracts.

Trump also reiterated his campaign promise to establish the U.S. as the "crypto capital" in his Wednesday post.

He stated, "Moreover, while we currently hold the title of the Crypto (Bitcoin, etc.) Capital of the World, other nations are actively trying to usurp that position, but we will not allow it."

UPDATE (May 26, 2026, 21:56 UTC): Links have been added throughout.