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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.
May 28, 2026, 8:57 a.m. 2 min read
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 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.
