Trump Endorses Prediction Markets in Move That Could Reshape DeFi Regulatory Landscape

Former President Donald Trump has thrown his weight behind prediction markets, specifically naming platforms Polymarket and Kalshi in a Truth Social post. The endorsement comes amid an ongoing jurisdictional clash between federal regulators and state officials over event contracts.

Trump praised CFTC Chairman Michael Selig for asserting federal authority over these markets while lambasting state attempts to ban them as "scum" tactics. This intervention could prove pivotal for oracle-dependent DeFi protocols and on-chain event markets seeking regulatory clarity.

The CFTC has already taken legal action against multiple state attorneys general to establish preemption over local gambling bans. Market observers now watch whether this political backing will create sustainable frameworks or introduce new regulatory capture risks that could depress asset valuations.