Trump Endorses Prediction Markets as “Financial Market,” Praises CFTC Oversight

President Donald Trump publicly endorsed prediction markets on social media in his strongest statement yet on his support for the industry and the Commodity Futures Trading Commission’s (CFTC) authority over the sector.

In a Truth Social post, Trump wrote:

It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive.”

Trump added that his administration was setting “rules of the road” that would become the “Gold Standard for the States.”

The comments came amid a growing legal battle between prediction market operators and state regulators over whether sports event contracts fall under the CFTC’s exclusive jurisdiction or state gambling laws.

Trump also directly attacked several prominent critics of prediction markets, writing:

We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!”

The officials mentioned have all either taken regulatory or legislative action or publicly criticized prediction markets.

Last month, New York Attorney General Letitia James launched a lawsuit against Gemini and Coinbase related to their prediction market platforms. Meanwhile, Minnesota Gov. Tim Walz signed legislation to ban prediction markets, making the state the first to enact a direct ban on the platforms. In response, the CFTC sued Minnesota and New York.

Illinois Gov. JB Pritzker recently signed an executive order to restrict insider trading by state employees tied to prediction markets. Former New Jersey Gov. Chris Christie, now tied to casino industry lobbying efforts, has also repeatedly criticized prediction markets.

Trump Frames Prediction Markets as Financial Markets

A central theme of Trump’s post was framing prediction markets as financial products rather than gambling, echoing arguments by both the industry and the CFTC in court.

Trump wrote that other countries were “after this new form of Financial Market.” He added that the U.S. needed to remain “at the top.” Notably, Trump referred to prediction markets as a “Financial Market” in the post, reinforcing the administration’s position that the products fall under federal financial regulation rather than gambling law.

He also tied prediction markets to broader crypto and fintech competition. He wrote, “It is a major Industry, and we must protect it.”

The CFTC has repeatedly argued that the Commodity Exchange Act grants the agency “exclusive jurisdiction” over federally regulated event contracts listed on designated contract markets. That position is currently at the center of multiple ongoing lawsuits involving states. Those include Nevada, New Jersey, Maryland, Rhode Island, Minnesota, and others.

Trump also praised CFTC Chairman Michael Selig, writing:

Mike Selig, CFTC Chairman, and respected by all, is doing a great job. Thank you, Mike!”

Comments Mark Sharp Shift From April Remarks

Trump’s comments also stand in contrast to remarks he made in April when he appeared more skeptical of prediction markets. Speaking to reporters in the Oval Office following questions tied to geopolitical event contracts, Trump said:

You know, the whole world, unfortunately, has become somewhat of a casino.”

He added:

I was never much in favor of it. I don’t like it conceptually, but it is what it is now.”

Trump’s latest comments came shortly after The New York Times published an investigation into his administration’s handling of crypto and prediction market regulation, including the CFTC’s relationship with firms tied to Trump allies and business interests.

The president and his family have financial ties to the prediction market sector. Last year, Trump’s social media company announced a partnership with Crypto.com to launch an exchange offering markets on elections, economic indicators, commodity prices, and sports. However, the company recently scaled back on these plans.

Additionally, Donald Trump Jr. is a paid advisor for Kalshi and an investor in Polymarket.

The statement could carry significant political weight for the industry as states continue advancing legislation targeting prediction markets while federal litigation over the sector’s legality and regulation continues expanding.