President Donald Trump said he wants the federal government to establish regulation for prediction markets as some states consider restrictions.
The move comes as policymakers weigh the legitimacy of platforms that allow users to bet on political and economic outcomes. Federal oversight could prevent a fragmented legal landscape where platforms are legal in some states but banned in others.
Trump said he wants the federal government to set the "rules of the road" on prediction markets. The administration's stance was reported on Feb. 17, 2026 [1].
This push for federal guidelines follows concerns regarding insider trading and the potential for market manipulation. Some states have moved toward restrictions due to these risks and ties between the Trump family and certain prediction-market platforms [2].
The administration has indicated support for platforms such as Kalshi and Polymarket [3]. These platforms have faced varying degrees of regulatory scrutiny as they expand their reach into U.S. markets.
By shifting the regulatory burden to the federal level, the administration aims to create a uniform standard for the industry. This approach would potentially override state-level bans and provide a clear legal framework for operators and users alike.
“"I want the federal government to set the 'rules of the road' on prediction markets."”
The push for federal regulation represents a strategic effort to legitimize prediction markets as financial tools rather than mere gambling. By establishing a national standard, the administration could protect the growth of these platforms from state-level prohibitions while addressing systemic risks like insider trading through a single regulatory body.
