Republican Utah Gov. Spencer Cox lashed out at the Trump administration in a debate over who should have the authority to police online prediction markets amid a broader conflict between federal regulators and states with strict anti-gambling laws.
The clash centers on Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig, who moved to impose "exclusive jurisdiction" over event-based trading platforms like Kalshi and Polymarket by labeling them as derivatives that are only subject to federal oversight, not state gambling laws, according to NBC News.
I have some big news to announce… pic.twitter.com/3OBNTaOnIL
— Mike Selig (@ChairmanSelig) February 17, 2026
Prediction markets are platforms where people buy and sell bets on future events like elections or sports games. The price of each bet shows how likely people think an event is going to happen.
Cox responded by criticizing the CFTC's move, saying it is trying to undermine state sovereignty and ignoring the dangers of gambling sites.
"I appreciate you attempting this with a straight face, but I don't remember the CFTC having authority over the 'derivative market' of LeBron James rebounds," Cox wrote in a post on X. "These prediction markets you are breathlessly defending are gambling—pure and simple. They are destroying the lives of families and countless Americans, especially young men. They have no place in Utah."
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Mike, I appreciate you attempting this with a straight face, but I don’t remember the CFTC having authority over the “derivative market” of LeBron James rebounds. These prediction markets you are breathlessly defending are gambling—pure and simple. They are destroying the lives… https://t.co/Ohup2x3D8u
— Governor Cox (@GovCox) February 17, 2026
The governor declared that he would "use every resource within my disposal…to beat you in court."
Selig argues that prediction markets are a legitimate financial tool that falls under federal derivatives law, which puts them under the CFTC's purview. He noted that prediction markets have faced "a barrage of state-driven lawsuits" and cautioned that the agency "will not remain passive while overzealous state authorities jeopardize the agency's exclusive jurisdiction."
Selig also argued that these markets help Americans assess risks such as weather or energy prices and "serve as a crucial check on our news media and information sources."
New Jersey Gov. Chris Christie, who advises the American Gaming Association, sided with Cox, saying the CFTC shows "absolutely no respect or regard for states' rights" and countered Selig's framing of prediction markets by saying "A bet is not an investment," according to Politico.
The Trump administration is launching a legal and media campaign to assert federal authority over prediction markets. Selig backed a series of court filings in cases related to exchanges in Nevada and other states, claiming their pushback threatens "to undermine federal law and disrupt financial innovation."
Nevertheless, states like Massachusetts, Maryland, Nevada, and Utah are going forward with cease-and-desist orders. Utah's legislature is pushing legislation that would classify bets made on prediction markets as gambling, which could set up a legal showdown between states and the federal government that could reach the Supreme Court.
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