White House regulatory office begins review of CFTC proposal to establish federal oversight over prediction markets amid state legal challenges.
The White House’s Office of Information and Regulatory Affairs has started reviewing a proposed CFTC rule on prediction markets, a critical step toward federal regulation. The proposal, received on May 26, aims to clarify the CFTC’s authority over event contracts, including those tied to elections and sports, according to a federal filing.
The move follows months of legal disputes as states argue that some prediction markets resemble online sports betting. President Donald Trump recently endorsed the CFTC’s exclusive oversight, signaling political support for a unified federal framework. Platforms like Kalshi and Polymarket could face new operational rules if the proposal advances.
The review does not yet include the full text of the rule, leaving key details unclear. The outcome may resolve ongoing conflicts between federal and state regulators over jurisdiction in the rapidly growing prediction-market sector.