White House reviews CFTC prediction-market rule as Trump backs federal control

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email White House reviews CFTC prediction-market rule as Trump backs federal control The proposal could shape how Kalshi, Polymarket, and other event-contract platforms operate as states challenge the CFTC’s authority. By Sam Reynolds | Edited by Sheldon Reback May 28, 2026, 8:57 a.m. 2 min read Make preferred on (Tabrez Syed/Unsplash/Modified by CoinDesk) What to know : The White House’s Office of Information and Regulatory Affairs has begun reviewing a proposed CFTC rule on prediction markets, a key step in the federal regulatory process. The move signals the CFTC is advancing toward a broader federal framework for event contracts, including those tied to elections, gaming and sports, after months of legal and political disputes. The review comes shortly after President Donald Trump publicly endorsed the CFTC’s exclusive authority over prediction markets, even as several states argue that some event contracts amount to online sports betting. The White House’s regulatory review office is examining a proposed Commodity Futures Trading Commission (CFTC) rule on prediction markets, according to a federal filing that could shape how platforms such as Kalshi and Polymarket operate across the U.S. A RegInfo.gov entry shows that the proposal was received by the Office of Information and Regulatory Affairs on May 26 under Executive Order 12866, triggering a review of what the CFTC describes as a proposed rule on “Prediction Markets.” The filing does not include the text of the proposed rule. The move marks one of the clearest signs yet that the CFTC is preparing a broader federal framework for event contracts, following months of legal and political battles over sports and election markets. Illinois, New Jersey and other states have argued that sports-linked event contracts effectively function as online betting markets. Kalshi and the CFTC have countered that designated contract markets regulated under federal commodities law fall under the agency’s exclusive authority. The executive order governs how major federal regulations are vetted before publication, requiring agencies to submit significant rules for economic and policy analysis. OIRA, a division within the Office of Management and Budget, oversees the process. The timing comes days after President Donald Trump publicly backed the CFTC’s authority over prediction markets, as CoinDesk previously reported , calling it “critically important” that the agency retain “exclusive authority” over the sector in a Truth Social post. The proposal follows a March advance notice of proposed rulemaking in which the CFTC sought public comment on which prediction market contracts may be prohibited as “contrary to the public interest,” including contracts tied to elections, gaming, and sports. CFTC Prediction Markets Regulation More For You U.S. CFTC files request to erase Gemini settlement that it no longer considers fair By Jesse Hamilton | Edited by Nikhilesh De 8 hours ago The regulator went back to analyze the 2022 case and decided that it wouldn't have been pursued under current management and practices. Read full story Latest Crypto News Diverging trends: Ether slides below $2,000 while futures open interest hits record high of 16 million ETH 1 hour ago BlackRock's bitcoin ETF sheds $528 million, the second-largest daily outflow on record 3 hours ago Bitcoin could be heading much lower, fund manager warns as $150 billion Treasury operation nears 4 hours ago XRP drops 4% below $1.30 as heavy selling breaks key support zone 4 hours ago Bitcoin drops below $73,000 as U.S. strikes on Iran spark $1 billion liquidations 4 hours ago U.S. CFTC files request to erase Gemini settlement that it no longer considers fair 8 hours ago Top Stories The crypto industry’s massive political war chest is starting to lean Republican ahead of midterms 11 hours ago Google engineer insider-traded search results on Polymarket, Feds allege 11 hours ago Elon Musk could become a top 5 corporate bitcoin holder if Tesla and SpaceX merge 15 hours ago DTCC plans to bring tokenized assets to Stellar in latest Wall Street blockchain push 19 hours ago Robinhood is letting AI trade for you so you don't have to keep checking the markets 19 hours ago