WASHINGTON — President Donald Trump asserted on Truth Social that the Commodity Futures Trading Commission must retain exclusive federal authority over prediction markets as legal disputes intensify with Minnesota and New York over state-level regulation. Trump criticized Minnesota Gov. Tim Walz and New York Attorney General Letitia James for attempting to regulate the markets, framing the issue as a matter of federal jurisdiction and U.S. competitiveness.

“It is critically important that the Commodity Futures Trading Commission’s exclusive authority over prediction markets is maintained and that they will thrive,” Trump wrote. He added that under his leadership, the U.S. is setting “rules of the road” that are the Gold Standard for the States.

Trump also emphasized the global stakes, stating that other countries are pursuing this new form of financial market and that the U.S. wants to remain at the top. He declared the U.S. is currently the “Crypto (Bitcoin, etc.) Capital of the World” and vowed that other countries will not replace it in that role.

The Trump administration has sued to assert the CFTC’s authority over Minnesota’s newly enacted ban on prediction market sites—the first such law in the country, signed by Gov. Walz. Meanwhile, New York Attorney General Letitia James has sued crypto firms Coinbase and Gemini, alleging their prediction market platforms constitute unlicensed gambling operations. Both companies maintain they are regulated at the federal level, not by individual states.

An investigation reported that the CFTC has consistently supported the growth of prediction markets and softened enforcement of digital currency regulations by reducing staff and sidelining career officials. The future of these markets hinges on whether federal or state authorities hold legal jurisdiction.

Prediction markets face increasing scrutiny from states that view them as unlicensed casinos violating gaming laws. While Trump and his allies at the CFTC argue these platforms are financial markets deserving federal oversight akin to securities and commodities, a growing number of governors and attorneys general from both parties contend that event-based betting is gambling and should be regulated like lotteries and casinos at the state level.

Trump and his family have financial ties to the prediction market and crypto sectors, including through World Liberty Financial. Donald Trump Jr. is linked to Kalshi and Polymarket, two leading platforms in the event-contract betting industry.