White House begins review of CFTC proposal to oversee prediction markets
The CFTC has transmitted its planned rules for event contracts to the White House, triggering federal regulatory review under the Administrative Procedure Act. The submission, confirmed Wednesday, May 27, 2026, follows two years of enforcement actions and state bans, shifting the agency from case-by-case enforcement to formal rulemaking with public comment. President Trump has publicly sided with the CFTC in the federal-state oversight dispute and vowed a 'future-proof' crypto market structure. The proposed rules, first developed in March 2026, would govern how prediction-market platforms operate under CFTC jurisdiction. Concerns have been raised about platforms including Polymarket, Crypto.com, and Gemini Titan, and career CFTC officials reportedly questioned some firms' compliance ahead of the submission. No timeline for White House action or rule contents were disclosed.
CFTC Chair Selig must now draft final rules knowing Trump has both praised Kalshi and Polymarket and demanded sole federal control, while the same staff who flagged those firms have been suspended. Any rule text that tightens compliance could directly contradict White House messaging.
Fifth intervention this week by Trump or the White House in prediction-markets regulation, after direct praise for Kalshi and Polymarket, the suspension of CFTC officials who flagged those same firms, and his endorsement of sole CFTC control.