Trump’s CFTC Shields His Family’s Prediction Market Partners From Prosecution
The Commodity Futures Trading Commission (CFTC) filed a movement Wednesday searching for a preliminary injunction and non permanent restraining order in opposition to Arizona’s enforcement of state playing legal guidelines on prediction markets.
The motion escalates an already historic battle. The company sued Arizona, Connecticut, and Illinois final week, marking the primary time in its 50-year historical past that it has sued a state.
Federal Power Play With Family Ties
CFTC Chairman Michael S. Selig framed the injunction request as a protection of federal authority, noting that the CFTC will vigorously defend its unique authority over prediction markets.
“The company gained’t stand for intimidation by states searching for to nullify federal legislation,” wrote Selig in a submit.
It follows a movement in Arizona that builds on a latest submitting in opposition to States that use legal and playing legal guidelines to intrude with CFTC-regulated prediction markets.
Arizona’s resolution to weaponize preempted state legal legislation in opposition to corporations that adjust to a complete federal regime units a harmful precedent… The CFTC is dedicated to vigorously defending its unique authority over prediction markets,” read an excerpt within the press launch, citing Selig.
Arizona filed criminal charges against Kalshi in March, alleging unlawful playing and unauthorized election wagering.
The CFTC argues that prediction markets fall underneath the Commodity Exchange Act (CEA), which grants the company unique federal jurisdiction over occasion contracts.
However, the platforms the CFTC is defending carry important monetary ties to the Trump household.
Donald Trump Jr. serves as a paid strategic advisor to Kalshi and sits on Polymarket’s advisory board. His enterprise capital agency, 1789 Capital, invested thousands and thousands into Polymarket in August 2025.
Crypto.com, Robinhood, and the Conflict Question
The connections lengthen additional. Trump Media & Technology Group (TMTG) partnered with Crypto.com to build Truth Predict, a prediction market platform for Truth Social.
Crypto.com has donated at least $35 million to MAGA Inc., Trump’s main Super PAC.
Robinhood introduced Monday it should function the brokerage and initial trustee for Trump Accounts. All 4 corporations obtained cease-and-desist letters from the states the CFTC is now suing.
Georgia State University professor Todd Phillips told NPR the federal fits transcend advocacy. He described them as an try and tilt the scales in favor of prediction markets.
Connecticut Attorney General William Tong pushed again, calling prediction market contracts plainly unlicensed unlawful playing and pledging to defend state shopper safety legal guidelines.
The Ninth Circuit will hear oral arguments on April 16 in a consolidated case involving Kalshi, Robinhood, and Crypto.com.
That ruling may decide whether or not prediction markets function underneath one federal framework or face state-by-state restrictions.
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