“This action is inconsistent with the CFTC’s established framework for regulating prediction markets,” the spokesperson said in a statement sent to CoinDesk.
So far, the states that have filed such a challenge to the prediction markets have faced countersuits from the CFTC, with Chairman Mike Selig taking an aggressive legal stance defending his agency’s authority as the sole regulatory power over event contracts, which he says fall squarely under the CFTC’s authority over U.S. derivatives.
And Trump has recently endorsed him.
“It is vitally important that the CFTC’s exclusive authority over Prediction Markets is preserved and that they thrive,” Trump wrote on his social media site, Truth Social. “Under my leadership, we are establishing ‘rules of the road,’ which are the gold standard for the states.”
He argued that his political enemies at the state level (offering names including Minnesota Gov. Tim Walz and Illinois Gov. JB Pritzker) are “SCUM” who shouldn’t be allowed to set the rules.
“It’s a great industry and we must protect it,” Trump wrote. “Mike Selig, CFTC Chairman, and respected by all, is doing a great job.”
The CFTC has sued eight states — most recently New Mexico — and jumped into other lawsuits involving the sector.
