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business6h ago
Prediction markets regulation proposal by CFTC eyed by White House
- The White House is reviewing a proposal to regulate prediction markets like Kalshi and Polymarket, per a new filing.
- President Trump emphasized that the CFTC's exclusive authority should be maintained to let prediction markets thrive.
- Gary Gensler stated the CFTC lacks clear authority under Dodd-Frank to regulate prediction markets, suggesting states should regulate them.
- CFTC Chairman Michael Selig previously indicated the agency planned to write rules for prediction markets before reversing a sports and politics prohibition.
- State attorneys general have pursued actions against Kalshi, Polymarket, and related platforms over gambling and betting concerns.
- Trump tied the debate to international competition, saying other countries aim to lead this new financial market.
- Gensler warned the Supreme Court may ultimately decide who regualtes prediction markets.
- CNBC requested comment from the CFTC on the filing and reported on the equities tied to Kalshi and Polymarket.
- The filing coincides with public remarks by Trump on state and federal rulemaking over markets.
- The article notes ongoing friction between federal and state regulators over who regulates these markets.
- The White House is evaluating the proposal with the Office of Management and Budget.
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