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In a Truth Social post on Tuesday night, President Donald Trump sided with the federal government in the nationwide battle over who gets to regulate the prediction markets.
Trump made it clear that he wants the Commodity Futures Trading Commission (CFTC) to hold absolute and exclusive authority over platforms like Kalshi and Polymarket, basically telling meddling state governors to back off.
“Other countries are after this new form of financial market, and we want to remain at the top. Likewise, and even more importantly, where we are currently the crypto (Bitcoin, etc.). Capital of the World, other countries are trying diligently to replace us in that capacity, but we won’t let that happen. It is a major industry, and we must protect it. Mike Selig, CFTC Chairman, and respected by all, is doing a great job. Thank you, Mike! President DONALD J. TRUMP,” Trump wrote on Truth Social.
Will this give Kalshi and the likes a breather from all the court cases, or will this send state regulators to their cave for the time being? Only time will tell.
Trump declares war on states restricting prediction markets
For months, prediction markets have been caught in an unfriendly identity crisis. Platforms say they are legitimate financial ventures, while various state authorities look at them and see unauthorized gambling rings.
Things went south when Minnesota Governor Tim Walz signed a bill completely outlawing prediction markets within his state lines. This was the first time something like this was happening in the prediction market industry. The federal lawsuit that came from the CFTC was almost immediate.
Trump wasted no time naming names and throwing jabs at the political figures who are fueling the state resistance.
“It is critically important that the CFTC’s exclusive authority over prediction markets is maintained and that they will thrive. Under my leadership, we are setting rules of the road that are the Gold Standard for the States. We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!” The Truth Social post read.
It didn’t take long before Illinois Governor JB Pritzker took to X to respond to Trump. It’s worth noting the state already has a bill in motion aiming to ban prediction markets.
“Illinois took action to prevent and ban insider trading with online prediction markets in our state.
The most corrupt president in our nation’s history wants to make sure states like ours can’t regulate prediction markets so his family and administration can keep profiting,” Pritzker wrote.
Prediction markets keep printing money while states keep filing lawsuits
While the politicians trade insults, the market is not slowing down for them to make a decision.
Weekly trading volumes on top platforms are surging from hundreds of millions last year to over three billion this year.
The current head of the federal regulatory agency, Michael Selig, is already staying true to what the president wants. The commission has taken legal action against states like Arizona and Illinois.
