TLDR Trump declared the CFTC must keep sole authority over prediction markets and block state-level interference Minnesota became the first state to pass a law blocking prediction market operators, signed by Tim Walz New York AG Letitia James accused crypto firms tied to prediction markets of running unlicensed gambling operations Trump and his family have financial ties to crypto ventures and prediction market platforms like Kalshi and Polymarket The core legal fight is whether prediction markets are federally regulated financial exchanges or state-regulated gambling
The White House is stepping directly into a growing fight between federal and state governments over who gets to regulate prediction markets.
President Donald Trump posted on social media Tuesday morning saying the Commodity Futures Trading Commission should have sole control over the prediction market industry. He argued the platforms should be free to expand without state regulators getting involved.
Trump also repeated his promise to keep the United States at the center of the global cryptocurrency business.
States Push Back With New Laws
The post came just two days after The New York Times published an investigation into how the CFTC has eased pressure on crypto firms and prediction market operators under Trump-aligned leadership. The report said the agency has cut enforcement staff and sided with the industry on key legal questions.
Prediction markets are platforms where users trade contracts based on real-world events. These include elections, economic reports, and sports outcomes. Companies like Kalshi and Polymarket have pushed into mainstream finance and say they operate as federally regulated exchanges.
States see it differently. Many state officials view these platforms as gambling businesses dressed up as financial products.
Minnesota became the first state to pass a law aimed at blocking prediction market operators. Governor Tim Walz signed the legislation last week. The