‘It Smells Like Corruption..’: Rep. McGovern Links Trump Jr To Insider Trading, Grills CFTC Chair

This video captures a heated exchange during a House Ways and Means Committee hearing between Rep. Jim McGovern and CFTC Chair Michael S. Selig. The discussion focuses on allegations of insider trading and conflicts of interest involving the Trump family and prediction markets.

Key points from the hearing:

  • Concerns over Prediction Markets: Rep. McGovern questions Chair Selig regarding the competitive nature of Kalshi and Polymarket, noting that Donald Trump Jr. serves as an adviser for both companies (1:14-1:26).
  • Allegations of Insider Trading: McGovern highlights a specific instance from March 23rd where significant trades were placed in oil and equity futures shortly before President Trump posted about ceasefire talks on Truth Social (3:02-3:36). He argues that the odds of such a trade being coincidental are extremely low.
  • Accusations of Corruption: McGovern expresses strong concerns that the Trump family is utilizing public office for private financial gain, citing reports that the family's net worth increased by $1.4 billion since the President took office (0:00-0:08, 4:41-5:00).
  • CFTC Position: Chair Selig maintains that the CFTC treats all market participants equally, adheres to a zero-tolerance policy regarding fraud and manipulation, and refuses to engage in speculation regarding the Trump family's specific knowledge or activities (2:31-2:44, 4:08-4:17, 4:30-4:41).

Transcript

 
Are you aware of public reporting that the net worth of the Trump family,
4 seconds
meaning President Trump and his immediate family members, has gone up by $1.4 billion?
12 seconds
I want to thank you, Mr. Chairman, for being here. And while I appreciate that you think this administration is done right by American farmers, let me tell
20 seconds
you that uh our farmers are struggling like never before in a large part due to policies uh that this administration has
27 seconds
championed. Uh, but I I want to talk about the predictions markets. Um, as you know, um, I and others, including
34 seconds
ranking member Craig, sent you a letter expressing our serious concerns about the possibility of insider trading. And I'll get to that in a moment, but I just
43 seconds
want to ask a couple of basic questions here. Uh, Mr. Chairman, would you say that the two biggest prediction markets uh, Kelshi and Poly Market are competing are competing with one another? I mean,
54 seconds
they're competitors, right?
56 seconds
I believe all market participants are in competition.
59 seconds
So I take as a yes. And as competitors in the same field, it would stand to reason then that they're trying to gain an advantage over one another. That's what competitors do, right?
1 minute, 12 seconds
That's what Yeah. competition is. Yes.
1 minute, 14 seconds
So Mr. Chairman, are you aware that President Trump's son Donald Trump Jr.
1 minute, 21 seconds
has been hired as an adviser for both Kelshi and Poly Market, two competing companies.
1 minute, 29 seconds
Congressman, I'm aware of this.
1 minute, 31 seconds
Uh uh and and would you say that it's accurate then that the Trump family has a financial stake in how these prediction markets are regulated?
1 minute, 44 seconds
Congressman, I I I believe this hypothetical that you're trying to engage in is is a political hypothetical. the president's son is,
1 minute, 51 seconds
you know, um, you know, uh, involved with both of these companies. I mean, he makes a lot of money for it, but, uh, of course they have a financial interest,
1 minute, 59 seconds
um, in in and all of this. I mean, the president's son is on the board of both multi-billion dollar prediction market companies. So, it seems to me like the
2 minutes, 8 seconds
only reason two competing companies hired the same person is because they think he must be really, really, really
2 minutes, 15 seconds
valuable. I mean, and I wonder why they would think that, right? I mean, but Mr.
2 minutes, 20 seconds
Selig, has anybody in the White House ever asked or insinuated that you should drop the CT CFTC's probe into Poly Market?
2 minutes, 31 seconds
Congressman, we treat all market participants alike. We do not pick winners and losers or or engage in favoritism or bring politics into any of
2 minutes, 39 seconds
these matters. We take them very seriously. And I think it's insulting that you're insinuating that we would No, I'm worried because it smells like corruption. I'm I'll I'll be honest with
2 minutes, 47 seconds
you, Mr. Celig, back to something you said about prediction markets and going after insider trading. You said in your testimony just now that anyone who
2 minutes, 54 seconds
engages in fraud, manipulation, or insider trading in any of our markets will face the full force of the law. And
3 minutes, 2 seconds
just before 7 a.m. on Monday, March 23rd, someone placed roughly $500 million in oil and equities future
3 minutes, 10 seconds
trades, betting that oil prices would plummet and the market would rally. And at 7:04 a.m., President Donald Trump
3 minutes, 19 seconds
posted um uh on True Social that the US had begun ceasefire talks. Now, whoever
3 minutes, 27 seconds
placed that bet knew what the president was about to post um and made a lot of money off of that. Made a lot of money off of that. Are you uh you know, Mr. S,
3 minutes, 37 seconds
you and I both know that the odds of that bet is like a billion to one. And I have one example after another of
3 minutes, 44 seconds
similar bets. There was no public information about ceasefire talks. These are decisions that are made um in the White House at the highest levels.
3 minutes, 55 seconds
Decisions that that very very very few people know about until the president posts them. So yes or no, Mr. Sing, do
4 minutes, 2 seconds
you do you think the president's top staff would have that knowledge about a ceasefire?
4 minutes, 8 seconds
Congressman, as I said in my opening statement, we have a zero tolerance policy when it comes to fraud, abusive trading practices, and manipulation, and
4 minutes, 15 seconds
anyone who engages in that behavior will face the full force.
4 minutes, 18 seconds
Do you think Do you think the president's family would have knowledge of uh of that? Like what about Donald Trump Jr.? Do you think he would have
4 minutes, 25 seconds
known that maybe a an announcement of a ceasefire was coming? Congressman, I'm not going to play speculation games with you, but I will tell you that we have a
4 minutes, 34 seconds
zero tolerance policy when it comes to fraud, manipulation, insider trading,
4 minutes, 38 seconds
and we will bring actions against that behavior.
4 minutes, 41 seconds
Are you aware of public reporting that the net worth of the Trump family,
4 minutes, 45 seconds
meaning President Trump and his immediate family members, has gone up by $1.4 billion since he took office a little over a year ago? Uh because it
4 minutes, 54 seconds
has. Uh, and I believe that this president is using public power for private profit. And I think he and his family are lining their pockets with
5 minutes, 3 seconds
insider information. And I think Donald Trump Jr. is trading his access for money. And I think it's the definition of corruption. And I think that your
5 minutes, 12 seconds
actions to deregulate this market are helping them do it. And I think it is wrong. I think it is wrong. And I think it's something that this committee needs to pay much more attention to. With that, I I yield back.
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