Donald Trump has publicly backed prediction markets and called for the Commodity Futures Trading Commission to maintain exclusive control over the sector as legal pressure on platforms like Polymarket and Kalshi continues to grow.
In a post on Truth Social, Trump argued that prediction markets are an important financial innovation and said the United States must remain competitive in the sector. He also linked the issue to the broader crypto industry, once again repeating his goal of keeping the US as the global crypto capital.
The comments come as several US states and international regulators intensify scrutiny of prediction market platforms. Authorities in states including Nevada, Washington, Illinois, and New York have argued that many of these products resemble gambling and therefore fall under state gaming laws rather than federal derivatives regulation.
Meanwhile, prediction market operators such as Polymarket and Kalshi continue to argue that their contracts fall under the CFTC’s jurisdiction and should therefore be protected from state-level enforcement actions.
The debate has now escalated into multiple court battles and could eventually reach the US Supreme Court. At the same time, lawmakers are also investigating concerns related to insider trading and suspicious trading activity on prediction platforms.
Globally, pressure is also increasing. Several countries, including India, Spain, and Indonesia, have recently moved to restrict or block prediction market services over concerns that they operate as unlicensed gambling platforms.
President Donald Trump backed the CFTC as the sole regulator of prediction markets, siding with the agency amid a growing legal fight with states over the multibillion-dollar industry https://t.co/xNg6k3xxvA
— Bloomberg (@business) May 26, 2026
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