President Donald Trump took to Truth Social on Wednesday to throw his weight behind the CFTC’s exclusive federal authority over prediction markets — and to warn state regulators to stand down. In a blunt post, Trump said the United States must protect its position as the world’s leading crypto destination, directly backing CFTC Chairman Selig on the issue.
What the president said
Trump’s statement came without warning, landing on the social platform he often uses for policy pronouncements. He didn’t mince words: the CFTC has sole jurisdiction over prediction markets, and states shouldn’t try to muscle in. The post was brief but clear — a sign the White House is closely watching the regulatory turf war that’s been brewing for months.
Why prediction markets matter
These markets, where users bet on the outcome of events like elections or economic data, have been a legal gray area for years. Some state regulators, notably in New Jersey and California, have tried to crack down on platforms like Kalshi and Polymarket, arguing they function like illegal gambling. The CFTC, under Chairman Selig, has pushed back, asserting its federal mandate under the Commodity Exchange Act. Trump’s post effectively endorses that stance — and puts the full weight of the presidency behind it.
What happens next
The message is aimed directly at state attorneys general and regulators who have been ramping up enforcement. Whether they comply is another question. The CFTC has already sued some platforms, but state-level actions have complicated the landscape. Trump’s post doesn’t carry the force of a court order or a formal executive action — but it signals that the White House will back the CFTC if a showdown reaches Washington. For now, Selig has the president’s public support, and the states have been told to stand down.
