The President of the USA Donald Trump on Tuesday he used his social media platform to promote prediction markets — a booming industry that benefits the Trump family — and attacked state leaders working to regulate them, singling out officials in Illinois, New York and elsewhere as “scum.”
Trump, whose administration is are considered by some to be the most corrupt in US history, arguing that the Commodity Futures Trading Commission (CFTC) should have “exclusive authority” over market prediction regulations, stating that “it’s a big industry and we have to protect it.” The president’s message echoed that of his CFTC chief, Mike Selig, who said earlier this year that the agency would fight any state-level efforts to restrict prediction markets.
Sen. Chris Murphy (D-Conn.), who is co-chairman lEGISLATION which would prohibit online prediction markets from allowing bets on government actions, said Trump’s post on Tuesday constitutes “more evidence of how cORRUPTION works.”
“Trump and his family are making a lot of money from these new prediction markets — and so of course he’s leading the charge against consumer protections and preferential regulatory treatment of his companies,” Murphy said, referring to Donald Trump The role of Jr. on the advisory board of Polymarket – the world’s largest prediction market platform.
of New York Times reported last month that Trump’s “publicly traded media company unveiled its own market forecasting product last year. And the president’s eldest son, Donald Trump Jr., has ties to two of the industry’s top firms, including Polymarket, the platform that Prosecutors say it was used by the soldier for betting at the right time.”
“The most corrupt president in our nation’s history wants to make sure states like ours can’t regulate the prediction markets so his family and administration can continue to profit.”
The president’s attack on state efforts to regulate prediction markets drew a swift backlash from state leaders who have supported cracking down on the platforms, warning they are avenues for insider trading and corruption.
“Illinois took action to prevent and stop insider trading with online prediction markets in our state,” Democratic Gov. JB Pritzker has written on social media in response to Trump’s post. “The most corrupt president in our nation’s history wants to make sure states like ours can’t regulate the prediction markets so his family and administration can continue to profit.”
of The Trump administrationwhich has steamrolled federal regulators who have raised questions about the prediction markets, are currently suing Illinois and other states over their efforts to regulate the platforms. Critics argue that prediction markets are illegal sports books masquerading as financial exchanges in an attempt to circumvent gambling restrictions.
Dominick Freda, Legal Director of Better Markets, said Tuesday that “Congress never intended to decriminalize nationwide gambling and certainly did not envision the tiny, ill-equipped CFTC adopting the role of nationwide gambling czar.” Better Markets on Tuesday filed a amicus brief in support of Tennessee’s effort to curb Kalshi and other prediction market platforms.
“The CFTC continues to waste its resources and focus on promoting these unpoliced, unregulated casinos when it should be focusing on its real job: regulating the multi-trillion dollar commodity and derivatives markets,” Freda said. “It is more important than ever that the CFTC regulate and monitor those markets so that Americans can count on stable prices for the many commodities they rely on, from gas to groceries. The CFTC should leave gambling regulation to Tennessee and other states whose laws and regulations have protected the American public for decades and should be allowed to continue to do so.”
