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

The White House’s Office of Information and Regulatory Affairs has begun reviewing a proposed CFTC rule on prediction markets, advancing a potential federal framework that could determine how event-contract platforms such as Kalshi and Polymarket operate nationwide. The review (filed May 26 under Executive Order 12866) and President Trump’s recent public endorsement of exclusive CFTC authority increase the likelihood of federal preemption over state claims that some contracts amount to online sports betting. For markets, a finalized rule would reduce legal uncertainty for designated contract markets, potentially broadening national access and product development for event contracts — but it may also prompt continued litigation and state pushback that could keep volatility in platform operations and related market activity.