This is my truth tell me yours: President Donald Trump weighed in on the side of the Commodity Futures Trading Commission (CFTC) in the debate over whether the federal authority should have jurisdiction over prediction markets and labeled those that believe the states should have precedence as “scum.”

• Via a Truth Social post, Trump said it was “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.”

Scum dancing; In response to the various legal actions taken by the states, Trump ranted that “we cannot have SCUM like Chris Christie [ex-Governor of New Jersey], Letitia James [New York AG], Tim Walz [Governor of Minnesota], and JB Pritzker [Gov. of Illinois] setting the rules!”

• Back in April, James was among the bipartisan group of 38 state AGs that filed an amicus brief supporting Massachusetts’ case against Kalshi.
• In Minnesota, meanwhile, the Trump administration has sued the state over its new prediction market ban, arguing the law is preempted by federal law.
• Similarly, the CFTC is also suing Illinois, among other states that have attempted to move against prediction markets.

Rattle, rattle, goes the bullet round and round the roulette wheel: Trump’s latest comments appear to mark an abrupt repositioning compared to what he said in the wake of the Gannon Ken Van Dyke and Maduro markets insider-trading scandal, when he suggested “the whole world, unfortunately, has become somewhat of a casino.”

• “And you look at what’s going on all over the world, in Europe and every place, they’re doing these betting things,” he added.
• “I was never much in favor of it. I don’t like it conceptually, but it is what it is.”
• “No, I think that I’m not happy with any of that stuff. But they have all these different sites. They have predictive markets. It’s a crazy world. It’s a much different world than it was.”

Top of the world: In his latest post, the President went on to claim that “Other Countries are after this new form of Financial Market, and we want to remain at the top.”

• “Likewise, and even more importantly, where we are currently the Crypto (Bitcoin, etc.) Capital of the World, other Countries are trying diligently to replace us in that capacity, but we won’t let that happen.”
• “It is a major Industry, and we must protect it. Mike Selig, CFTC Chairman, and respected by all, is doing a great job.”

Spanish practices: Trump’s fears about ‘other countries’ might be somewhat overstated. Just last week, the Spanish gambling authority issued a temporary ban on Kalshi and Polymarket as it launched an investigation into whether the pair are offering gambling without a license.

• The Dirección General de Ordenación del Juego claimed both platforms are offering unlicensed online gaming products in the country and will conduct reviews over the next four months.
• If the regulator confirms its claims through the reviews, Kalshi and Polymarket will face permanent bans.
• Both platforms will have the option to seek gaming licenses or appeal the decision if the claims are confirmed.
• Spain follows in the wake of France, Belgium, Portugal, Hungary and Switzerland, which all have full bans in place, while Italy and Germany have trading restrictions under regulatory review.
• In the UK, the Gambling Commission has previously said that it was likely prediction markets would need a gambling license in order to operate.

Hand on the tiller: The New York Times last weekend revealed that two CFTC officials who raised questions about Polymarket and Crypto.com had been placed on indefinite leave.

• The paper noted that in the first 16 months of the Trump II administration, the CFTC has also shrunk its work force, sharply curtailed crypto enforcement and “helped out prediction markets at virtually every turn.”
• It also highlighted the explicit links between the Trump family and prediction markets operators, including Polymarket where Don Jr. is an investor.

Under notice: Separately, the White House is reviewing a new CFTC proposal that would lay out guidelines for event contracts. The measure is seen as being the latest move on the part of the agency to mark its turf as it battles with states over who gets to regulate the exploding prediction markets.

• According to a notice posted by the Office of Management and Budget, the plan is under review.
• The notice did not include any details about what’s in the proposal, which would be subject to public comment.