President Trump this week threw his weight behind the Commodity Futures Trading Commission (CFTC) in a brewing fight over who gets to regulate prediction markets — and did so in blunt terms. On Truth Social, Trump called state officials “SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker” and said the CFTC must retain “exclusive authority” as states move to classify fast-growing prediction markets under their gambling laws. He framed the issue as “critically important,” arguing that prediction markets should “thrive” under consistent federal “rules of the road” so the U.S. isn’t left behind as other countries develop the sector. A notable reversal Trump has shifted on the topic in recent months. In April he said he was “never much in favor” of prediction markets and warned they’d helped turn the world into “somewhat of a casino.” Days later, after talking with advisors and industry figures, he told Decrypt that “very smart” people back the sector and warned the U.S. could be “left out in the cold” if other countries move first. What are prediction markets — and why it matters Prediction markets let users wager on outcomes across crypto and traditional finance, sports, weather, politics and culture. The sector has expanded rapidly and is projected to reach $1 trillion in market volume by 2030. That growth has intensified a jurisdictional fight: federal regulators, led by the CFTC, treat prediction contracts as event-driven derivatives, while some states want to regulate them as gambling. The legal battleground States have pursued enforcement actions applying gambling laws to prediction contracts — including high-profile cases targeting Kalshi in Arizona and Nevada. The Trump administration has pushed back with lawsuits arguing that state bans unlawfully interfere with federal authority. CFTC’s push — and praise from the White House Trump singled out CFTC Chairman Mike Selig for praise, saying Selig is “doing a great job” as the agency advances rulemaking to bring exchanges onshore. Selig has argued for a U.S. framework that would require exchanges to register and operate under rules designed to ensure fair markets, customer protections and guardrails, warning that unclear regulation could drive activity offshore and risk “FTX-style implosions.” Concerns from lawmakers and the industry Efforts to centralize federal oversight have met resistance from both parties in Congress. Lawmakers have raised concerns about potential insider trading, the possibility of “war and death” markets, sports-style contracts, consumer risk, and how offshore platforms might still reach U.S. users. Industry voices urge calm. Farokh Sarmad, co-founder and president of prediction-market platform Myriad, told Decrypt that the issue “shouldn't be a partisan issue” and warned that past fights over crypto “set the industry back years.” He praised Selig’s work to build a framework and said “the last thing we need is a war.” Disclosure: Myriad is owned by Decrypt’s parent company, Dastan. Read more AI-generated news on: undefined/news