Trump backs CFTC control of prediction markets, slams four

President Donald Trump on May 26 defended the Commodity Futures Trading Commission’s authority to regulate prediction markets and praised Chairman Mike Selig. In a post on Truth Social he warned that foreign rivals aim to displace the United States as the global Bitcoin hub and called New Jersey Gov. Chris Christie, New York Attorney General Letitia James, Minnesota Gov. Tim Walz and Illinois Gov. J.B. Pritzker “SCUM”.

Mike Selig is the sole sitting commissioner on the CFTC’s five-member commission. Under his leadership the agency has moved to assert oversight of event contracts tied to future outcomes, including elections and economic indicators.

Prediction markets let traders buy and sell contracts that pay out based on the outcome of specified events. The sector has seen rapid growth: Kalshi was valued at about $22 billion in a May 2026 funding round, and monthly trading volumes across the industry have climbed past $20 billion, up from roughly $1.2 billion in early 2025.

The CFTC has filed cases against Arizona, Connecticut, Illinois, New York and Wisconsin, arguing federal oversight should preempt state restrictions. Thirty-eight state attorneys general joined Massachusetts in a lawsuit against Kalshi, with New York’s attorney general among the signers.

The dispute centers on whether state gambling and consumer-protection laws can apply to prediction market platforms that operate under federal rules. Legal experts expect the cases to move through the courts and possibly reach the U.S. Supreme Court.

Until courts issue a final ruling, companies and traders face a patchwork of state rules. The litigation will determine how prediction markets are regulated across the country.