Donald Trump urged that federal authorities, specifically the CFTC, maintain exclusive oversight of prediction markets, rejecting state efforts to regulate the sector as gambling. He argued that federal rules would allow the industry to thrive, warning that the U.S. risks falling behind other countries embracing these markets. While Trump previously expressed skepticism toward prediction markets, calling them casino-like, he has recently shifted to support them as a way to keep financial innovation in the U.S. Prediction markets allow bets on outcomes in finance, politics, sports, and more, and are growing rapidly, projected to reach $1 trillion in volume by 2030. The CFTC currently treats these platforms as derivatives markets. State-level attempts to regulate prediction markets as gambling have prompted legal pushback from the Trump administration, asserting federal authority. CFTC Chairman Mike Selig supports bringing exchanges onshore and establishing clear U.S. regulations to protect consumers and prevent offshore risk. Lawmakers from both parties remain concerned about handling insider trading, consumer safety, and offshore access. Industry advocates argue unified, federal regulation is crucial to avoid repeating regulatory setbacks seen with crypto.