White House eyes CFTC proposal for regulating prediction markets

A proposal for the Commodity Futures Trading Commission to regulate prediction markets such as Kalshi and Polymarket is under review by the White House, a filing from Tuesday shows. Details of the proposal, which are being reviewed by the Office of Management and Budget , are not visible on the filing. CNBC has requested comment from the CFTC, Kalshi and Polymarket on the filing, which Bloomberg reported earlier Wednesday. CFTC Chairman Michael Selig on Jan. 29 said the agency planned to write rules for governing prediction markets as he scrapped a proposed rule that would have prohibited trades on sports and politics on those platforms. The Commodity Futures Trading Commission headquarters in Washington, Dec. 23, 2022. Ting Shen | Bloomberg | Getty Images The agency has argued in public statements and in courts that it has exclusive authority to regulate the growing prediction market sector, rather than individual states, some of which are seeking to exercise such authority. Tuesday's filing came on the same day that President Donald Trump , in a social media post , said, "It is critically important that the CFTC's exclusive authority over Prediction Markets is maintained, and that they will thrive." "Under my leadership, we are setting 'rules of the road' that are the Gold Standard for the States. We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!" Trump wrote. …