Donald Trump backed CFTC Chair Michael Selig’s authority over prediction markets amid legal battles.
US President Donald Trump voiced public support on Tuesday for CFTC Chair Michael Selig's push to preserve the agency's authority over prediction markets, calling the matter "critically important." Trump made the statement in a post on Truth Social, where he also described cryptocurrency as a major industry and said other countries are actively working to displace the United States as the dominant market.
"It is critically important that the CFTC's exclusive authority over Prediction Markets is maintained, and that they will thrive," Trump wrote. He added that the US is currently the crypto capital of the world and said, "other Countries are trying diligently to replace us in that capacity, but we won't let that happen."
Selig, whom Trump appointed as the sole leader of the derivatives regulator, has spent the past year asserting that the CFTC holds exclusive jurisdiction over prediction markets. The agency has filed lawsuits against five states, including Wisconsin, Illinois, Arizona, Connecticut, and New York, over whether platforms such as Polymarket and Kalshi are operating in violation of state gaming and gambling laws. Selig has also initiated rulemaking to clarify the agency's statutory authority over event contracts.
Prediction markets have grown substantially in public profile since the 2024 US presidential election cycle, with platforms like Polymarket and Kalshi attracting both retail and institutional participants. Selig has argued that the Commodity Exchange Act gives the CFTC broad statutory reach over these products, a position that has drawn resistance from several states.
A New York Times investigation published over the weekend examined the CFTC's handling of several regulated firms and its internal staffing decisions. Senator Richard Blumenthal of Connecticut responded to the report on X, raising concerns about the agency's direction under the current leadership.
Trump's Tuesday post did not address the NYT report or the senator's remarks directly. His public endorsement of Selig reinforces the CFTC chair's position as he navigates simultaneous pressure from state regulators and Congressional oversight, with no legislative resolution to the jurisdictional dispute currently in place.
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