Trump reverses stance to back CFTC as sole prediction market regulator
President Donald Trump reversed his stance and backed the Commodity Futures Trading Commission as the sole regulator of prediction markets in a May 26 social media post, calling the effort 'critically important' and declaring he would set the 'rules of the road' for the industry. The endorsement of CFTC Chair Michael Selig came just weeks after Trump said he was 'never much in favor' of prediction markets. TD Cowen assessed the post as unlikely to change the ongoing legal landscape, predicting the issue will ultimately be decided by the Supreme Court. Several states have moved to restrict or challenge platforms including Kalshi, Polymarket, Crypto.com, and Robinhood, setting up a state-versus-federal jurisdictional showdown. Former CFTC Chair Gary Gensler discussed the framework proposal in a May 27 interview.
Forces Chair Selig to reconcile CFTC's active lawsuits in Minnesota, Wisconsin, and Pennsylvania with Trump's new marching orders, since any staff-driven legal strategy now risks crossing a White House that has already praised Kalshi and Polymarket and suspended the compliance officials who flagged those same firms.
Trump joins the CFTC, Kalshi, and Polymarket on the federal-preemption side of a five-front state fight that already spans Minnesota, Wisconsin, Pennsylvania, Ohio, and Rhode Island.