Summary
- The White House's OIRA has begun reviewing a draft prediction-market rule submitted by the CFTC.
- President Trump publicly backed preserving the CFTC's exclusive authority over prediction markets.
- The CFTC has sued five states while asserting exclusive jurisdiction over prediction markets, while state governments say they also have regulatory authority because the markets could violate sports-betting and gambling laws.
Forecast Trend Report by Period
The White House has begun reviewing a proposed rule for prediction markets.
The Office of Information and Regulatory Affairs, part of the White House Office of Management and Budget, recently received a draft prediction-market rule submitted by the Commodity Futures Trading Commission and has started the review process, The Block reported on May 27.
A CFTC spokesperson said the agency submitted a proposed rule on event contracts to OIRA and would comment further after the review is complete.
President Donald Trump publicly backed the CFTC's position earlier. In a Truth Social post the previous day, he wrote that preserving the CFTC's exclusive authority over prediction markets is "very important."
The CFTC has also moved to strengthen its jurisdiction over prediction markets. Michael Selig, a CFTC commissioner, has forcefully argued that prediction markets fall under the agency's "exclusive jurisdiction." The agency has filed lawsuits against five states: Wisconsin, Illinois, Arizona, Connecticut and New York.
State governments, by contrast, argue that prediction markets could amount to violations of sports-betting and gambling laws and that they also hold regulatory authority.
