Trump supports CFTC rule on prediction markets amid lawsuits

President Donald Trump has declared his support for exclusive federal oversight of prediction markets, placing the White House firmly on the side of the Commodity Futures Trading Commission in a growing legal and political clash with several states. In a social media post on Tuesday, Trump said it was critically important that the CFTC’s authority over prediction markets be maintained and that they will thrive.

Prediction markets are platforms where users trade contracts based on the outcomes of future events, such as elections, sports, economic data, or policy decisions. The CFTC, under Chairman Michael Selig, asserts that these products, when offered by regulated exchanges, are financial instruments under federal commodities law and that states cannot regulate them separately or classify them as illegal gambling.

This federal position is now being challenged by state officials who argue many of these contracts function as gambling products and should fall under state gaming regulations. New York Attorney General Letitia James has filed lawsuits alleging certain platforms violate state gambling laws. Illinois Governor J.B. Pritzker’s administration has issued cease-and-desist...