U.S. President Donald Trump has called for federal regulators to maintain control over prediction markets, arguing that states treating them as gambling undermines their potential. In a post on Truth Social, Trump criticized state officials like Chris Christie and Letitia James, insisting the CFTC should have exclusive authority. He argued that prediction markets should thrive under federal rules, as other countries adopt them, tying the issue to keeping crypto activity in the U.S. Trump's stance has evolved; earlier he was skeptical, but now he warns the U.S. risks being left behind. The CFTC, under Chairman Mike Selig, is working on a framework to bring exchanges onshore with protections against fraud and manipulation. However, lawmakers from both parties have raised concerns about insider trading, war markets, and consumer risks. The sector is projected to reach $1 trillion by 2030.

Key facts

• Trump insists CFTC maintain exclusive authority over prediction markets
• States treating prediction markets as gambling face federal opposition
• CFTC Chairman Selig pushes onshore framework to avoid FTX-style risks
• Lawmakers from both parties raise concerns about insider trading and war markets
• Prediction market volume projected to reach $1 trillion by 2030