In a post on Truth Social, US President Donald Trump stressed the importance of the Commodity Futures Trading Commission’s (CFTC) exclusive authority over prediction markets.
Trump also stated how the US, under his leadership is setting “rules of the road” and will aspire to keep the popularity of prediction markets alive despite regulatory criticisms.
It’s no secret that the prediction market sector has come under severe scrutiny from the regulated gaming industry in the US, with statewide regulators pursuing an insurmountable pile of legal action against prediction market operators in recent months. Last week alone saw action in the courts of both Rhode Island and Minnesota for operating gambling without the appropriate licensure.
Globally, the idea that prediction markets are gambling is one that is becoming increasingly concurrent, with Polymarket being banned from the Spanish and Indonesian markets this week for exactly that.
However, Trump and the CFTC argue that prediction markets presence should be maintained and be regulated at the federal level. Companies along with a number of governors and state attorneys insist that it is regulated at the federal level but should be at the state level also. Elsewhere recently, CFTC Chair Michel Selig – personally appointed by Trump – was grilled by congress over the commission’s lack of experience in regulating sports ‘wagering’ products.
In a major investigation headed by The New York Times, it was revealed that the CFTC helped advance prediction markets at virtually every turn, while decreasing regulatory enforcement of digital currencies, including culling the commission’s ranks and sidelining certain career officials.
Crypto and Bitcoin were also a vital part of his statement, saying “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.”
Donald Trump Jr currently works as a Strategic Advisor for prediction market operator Kalshi