Trump backs CFTC chief Selig, warns states on prediction markets

President Donald Trump posted a public statement Tuesday backing Commodity Futures Trading Commission Chair Michael Selig’s assertion that registered prediction markets fall under exclusive federal authority. He named former New Jersey Gov. Chris Christie, New York Attorney General Letitia James, Minnesota Gov. Tim Walz and Illinois Gov. J.B. Pritzker and called them ‘SCUM’ for what he described as state interference.

Trump said the CFTC’s jurisdiction must be preserved and described federal rules as the ‘Gold Standard for the States.’ He linked the issue to broader crypto policy, warning that other countries are trying to replace the United States as a leading crypto destination and urging protection for U.S. platforms.

Selig, sworn in late 2025, has advanced an argument in court filings and in agency rulemaking that exchanges registered with the CFTC operate under exclusive federal jurisdiction. The commission issued an Advanced Notice of Proposed Rulemaking earlier in 2026 seeking baseline requirements for how prediction contracts are listed, traded and monitored for fraud or manipulation. The CFTC has used filings to counter state efforts to treat registered platforms as illegal gambling or to impose separate licensing regimes.

State officials have taken several actions this year. New York’s attorney general filed lawsuits alleging some prediction markets violate state gambling laws. Minnesota enacted legislation that creates criminal penalties for certain operators. Illinois issued cease-and-desist orders against platforms operating in the state. Christie has defended state regulatory authority and has worked in an advisory role with gaming associations.

Prediction markets let users buy and sell contracts tied to real-world outcomes such as election results, central bank moves or sporting events. Platforms including Polymarket and Kalshi drew attention during the 2024 presidential election when contract prices tracking a Trump victory moved ahead of many polls. Estimates show user counts on some platforms have grown roughly fourfold since 2024. Polymarket runs on the Polygon blockchain and settles contracts in the stablecoin USDC, creating overlap between prediction markets and crypto infrastructure.

The presidential statement included a direct endorsement of Selig: ‘Mike Selig, CFTC Chairman, and respected by all, is doing a great job. Thank you Mike!’ The CFTC is defending federal preemption in state court cases while it advances formal rulemaking. Legal outcomes will depend on ongoing litigation and the commission’s regulatory timeline.