Opening
U.S. President Donald Trump posted on Truth Social Tuesday that maintaining the Commodity Futures Trading Commission's exclusive authority over prediction markets is critically important, naming four officials he said cannot set the rules for the industry. Trump praised CFTC Chairman Michael Selig in the post, called prediction markets a major industry the government must protect, and linked them to U.S. crypto leadership. The statement comes as Minnesota Governor Tim Walz signed the nation's first outright ban on prediction markets last week, prompting the CFTC and Department of Justice to sue within 24 hours to block the law. The regulatory clash centers on whether states can regulate event contracts that the CFTC claims fall under its exclusive federal jurisdiction over derivatives.
Trump's Statement on CFTC Authority
"It is critically important that the CFTC's exclusive authority over Prediction Markets is maintained, and that they will thrive," Trump wrote. He said his administration is setting "rules of the road" that are the "Gold Standard for the States." Trump named four officials he said cannot set those rules, writing, "We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!" Trump closed the post by writing, "Mike Selig, CFTC Chairman, and respected by all, is doing a great job. Thank you Mike!"
Minnesota Ban and Federal Lawsuit
Walz signed the nation's first outright ban on prediction markets last week. The CFTC, joined by the Department of Justice, sued to block it within 24 hours, arguing the law intrudes on federally regulated derivatives that fall under its exclusive jurisdiction. The agency has pressed the same claim against other states, challenging Ohio's complaint against Kalshi in the Sixth Circuit and telling the court the state was intruding on federal authority over event contracts.
Crypto Connection
"Other Countries are after this new form of Financial Market, and we want to remain at the top," Trump wrote. He added that "where we are currently the Crypto (Bitcoin, etc.) Capital of the World, other Countries are trying diligently to replace us in that capacity, but we won't let that happen," and said it is "a major Industry" the country must protect.
Selig's Role and CFTC Actions
Selig has spent months answering critics who liken event contracts to gambling by casting prediction markets as commodity derivatives under the CFTC's exclusive authority, governed by the same law as futures and options and run on federally regulated exchanges with clearinghouses and investor protections. He has warned that regulating the contracts away at home would push trading to offshore venues, where weaker oversight leaves U.S. information streams exposed to manipulation by foreign adversaries. Selig is the agency's only sitting commissioner, leaving him as its sole decision-maker on a market that still lacks settled federal rules. The CFTC has opened an advanced notice of proposed rulemaking to determine how event contracts should be handled, and Selig has said it will not pause that work despite the vacancies. The agency has signed an information-sharing agreement with the NHL to flag insider trading and fraud as event contracts push deeper into sports markets.
Regulatory Capacity Questions
At a House Agriculture Committee hearing, lawmakers pressed Selig on whether the CFTC has the capacity to police prediction markets and the broader crypto sector with roughly a sixth of the staff the Securities and Exchange Commission carries.
