Trump Administration Enters Prediction Market Legal Battle, CFTC Chairman States "We Will Not Stand Idly By"

BlockBeats News, February 18th, according to the Associated Press, the Trump administration has officially sided with prediction market operators Kalshi and Polymarket at the federal level in their legal battle against state governments attempting to ban these platforms.

Newly appointed chairman of the U.S. Commodity Futures Trading Commission, Michael Selig, wrote in an op-ed for The Wall Street Journal that the CFTC "will no longer stand idly by" and allow state governments to undermine the agency's exclusive jurisdiction over these markets. He further stated in a video message: "We'll see you in court."

Lawsuits in several states, including Nevada, have claimed that Kalshi and Polymarket are essentially unlicensed sports betting operations, violating state laws. Selig, on the other hand, argues that the operation of prediction markets is no different from other futures contracts and should be under federal regulation.

It is worth noting that former President Trump's son Donald Trump Jr. has invested in Polymarket through his venture capital firm and serves as a strategic advisor to Kalshi.

In response, Selig recently announced the formation of an "Innovation Advisory Committee," whose members include CEOs of companies such as Polymarket, Kalshi, Coinbase, and Robinhood. However, the committee lacks representation from consumer protection organizations, leading to criticism from some Republicans. Utah Governor Spencer Cox bluntly stated, "These prediction markets are gambling, plain and simple."