President Donald Trump emphasized the need for federal regulators to maintain authority over prediction markets, deeming it a "critically important" matter as states begin to classify this rapidly expanding sector as gambling under local legislation.
On Truth Social, Trump stated, “We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules,” insisting that the CFTC’s "exclusive authority" must be preserved as other nations explore what he describes as a new kind of financial market.
Trump asserted that prediction markets should be allowed to “thrive” under federal “rules of the road,” linking this to his broader initiative to retain cryptocurrency activities within the United States.
Over the past few months, Trump's position on prediction markets has evolved. In April, he mentioned he was “never much in favor” of them, describing their impact as transforming the world into “somewhat of a casino.” However, when asked if his administration would alter its stance, he responded that “very smart” individuals support the sector and warned that the U.S. risks being “left out in the cold” if other countries advance first.
“A lot of other countries are doing it, and when the other countries do it, we get left out in the cold if we don’t,” Trump told Decrypt.
Decrypt’s White House correspondent @sander_lutz inquired about Trump’s previous remarks on prediction markets:
“A lot of other countries are doing it, and when the other countries do it, we get left out in the cold if we don’t.” pic.twitter.com/IWPwxXDP7c
— Decrypt (@DecryptMedia) April 25, 2026
Overview of Prediction Markets in the U.S.
Prediction markets allow participants to bet on various outcomes spanning crypto, traditional markets, sports, weather, politics, and culture. This industry has experienced rapid growth in the last two years and is projected to achieve a market volume of $1 trillion by 2030.
Currently, federal regulators categorize prediction markets as event contracts under the CFTC’s jurisdiction, which subjects them to derivatives regulations instead of state-imposed gambling laws. State authorities have attempted to apply gambling regulations to these contracts, as seen in cases against Kalshi in Arizona and Nevada. The Trump administration has countered with lawsuits claiming that state efforts to ban prediction markets unlawfully infringe on federal authority.
Trump’s comments on Wednesday linked the ongoing conflict to the CFTC’s current regulatory initiatives, commending Chairman Mike Selig for “doing a great job.”
Selig has advocated for a regulatory framework to encourage exchanges to operate domestically, warning that a lack of clear U.S. regulations could drive activity overseas, potentially leading to FTX-like “implosions.” He emphasized that exchanges should register in the U.S. to comply with standards for fair markets, investor protection, and safeguards.
My complete interview with @ChairmanSelig of the CFTC.
We discussed the Chairman's background, his experiences at the SEC and now the CFTC, as well as crypto and prediction markets.
Timestamps:
00:00 - Background & discovering crypto
06:57 - Fighting the SEC before joining them
16:13 - Why the… pic.twitter.com/GpGh1D0iRW— Farokh (@farokh) April 1, 2026
However, these initiatives have faced resistance from lawmakers across party lines, who raised concerns about how federal oversight would manage issues like insider trading, war and death markets, sports-style contracts, consumer risk, and offshore platforms that may still serve U.S. users.
“Prediction markets shouldn't be a partisan issue,” remarked Farokh Sarmad, co-founder and president of the prediction market platform Myriad, to Decrypt. “We've already seen this happen with crypto, it set the industry back years and didn't do lawmakers any favors either.”
Sarmad praised the Trump administration, through CFTC Chair Mike Selig, for “doing great things to build a framework around prediction markets,” stating, “The last thing we need is a war.”
Disclosure: Myriad is owned by Decrypt’s parent company Dastan.