Trump Backs CFTC Exclusive Authority Over Prediction Markets Against State Actions

Key Facts

In a move reflecting a shift toward deregulating the fintech sector, US President Donald Trump has backed the Commodity Futures Trading Commission (CFTC) as the exclusive authority over prediction markets. Trump criticized state officials who launched legal actions against major platforms including Kalshi, Polymarket, and Robinhood, arguing such moves stifle innovation. Currently, multiple state authorities contend that these markets violate local laws by offering gambling services without proper licensing.

This political backing arrives as prediction platforms experience explosive growth, with Polymarket recording trading volumes exceeding $1 billion during previous political cycles according to industry reports. Among peers, Robinhood (HOOD) has recently expanded its offerings to include event derivatives, placing it in direct conflict with state regulators in jurisdictions like New York and Illinois. Per market data, the sector is actively seeking federal legal coverage to avoid the complexities of fragmented state-level regulations.

Traders should monitor HOOD stock levels, which stood at $20.12 (close May 26, 2026), to gauge market sentiment regarding these regulatory shifts. Looking ahead at the economic calendar, the release of the FOMC Minutes from May 20 remains a key catalyst for broader market liquidity and risk appetite in digital assets. Future administrative steps by the CFTC will be critical in defining the long-term legal framework for these emerging prediction platforms.