In a significant political and regulatory development, MAGA Inc., the primary Super PAC supporting former President Donald Trump, disclosed a substantial $5 million donation from Crypto.com, filed with the Federal Election Commission on Friday. The donation, recorded on January 23, 2026, was attributed to Crypto.com’s parent company, Foris Dax, Inc., marking a notable financial commitment to the Trump campaign. Just 25 days later, the Commodity Futures Trading Commission (CFTC), under Trump’s administration, intervened on behalf of Crypto.com in a crucial federal lawsuit.
The legal battle revolves around Crypto.com’s attempt to offer “prediction markets” on sporting events without acquiring a gaming license from the Nevada Gaming Control Board. Last year, Crypto.com sued the Board asserting its rights, but a federal court denied the company an injunction in October 2025. The company is currently appealing that decision.
In a surprising turn of events, CFTC Chairman Mike Selig not only submitted a formal amicus brief supporting Crypto.com’s appeal but also published an op-ed in the Wall Street Journal advocating for the company’s stance, alongside a supportive video post on social media platform X. The timing of the CFTC’s intervention, occurring shortly after the significant financial contribution from Crypto.com, has spurred ethical concerns.
During his confirmation hearing in November 2025, Selig appeared to sidestep direct commitment regarding the legality of prediction markets’ operations, indicating he would defer to judicial rulings. However, just weeks later, he shifted his position, publicly expressing his intent to reassess the CFTC’s involvement in ongoing court cases concerning prediction markets, including that of Crypto.com.
Selig’s stance has faced significant scrutiny, especially from political figures like Senator Adam Schiff, who probed him on the legality of betting on sports events. Selig maintained a legalistic approach, stating he would comply with judicial determinations. Yet, on February 5, after the donation had been made, he openly asserted that it was legal for prediction markets to operate without adhering to state regulations.
Critics, including Utah Governor Spencer Cox, have lambasted Selig’s position, asserting that these prediction markets should be categorized as gambling and are not under the CFTC’s purview. The ongoing legal discourse has raised questions regarding the distinction between prediction markets and traditional sports gambling, despite many arguing that they effectively serve the same purpose—facilitating betting on sports.
Since 2025, Crypto.com has emerged as one of the largest donors to MAGA Inc., contributing a total of $35 million, surpassing 10% of the Super PAC’s total funding. Alongside this financial backing, Crypto.com has developed a strategic partnership with Trump Media and Technology Group (TMTG), further entwining its interests with Trump’s political and media endeavors. Notably, in October, Crypto.com announced an integration of its prediction market with Truth Social, creating a joint venture called Truth Predict.
The regulatory implications of the CFTC’s backing of Crypto.com, and the broader intersection of politics and cryptocurrency, are under intense scrutiny, as questions continue to arise regarding the ethical dimensions of financial contributions and regulatory favoritism in the evolving landscape of digital markets. As the legal battle progresses, both the CFTC’s actions and Crypto.com’s motivations will likely remain focal points in discussions about regulation, ethics, and the future of prediction markets in the realm of sports betting.
