Trump's eldest son resigns as advisor to prediction markets Calci amid warning of Democratic investigation
Quick Look
- Donald Trump Jr. has stepped down from his position as an advisor to prediction markets platform Calci.
- With the Democratic Party taking control of the Senate and House of Representatives in the midterm elections, concerns were raised within Calci about repercussions, and Calci stated that the reason for terminating the contract was the expansion of investment by competitors without political considerations.
AI-generated summary
Why It Matters
Prediction market platforms such as Calci and PolyMarket attracted attention as they reflected a high probability of President Trump winning during the 2024 US presidential election, unlike existing opinion polls. Since the launch of the Trump administration, the Commodity Futures Trading Commission (CFTC) has taken a regulatory stance favorable to prediction markets, and related industries have grown rapidly.
Reuters reported on the 12th (local time) that Donald Trump Jr., the eldest son of U.S. President Donald Trump, is stepping down from his position as an advisor to prediction market platform Calci.
This resignation came as the Democratic Party, which won the midterm election, announced an investigation into the business relationship between the Trump family and the prediction market and virtual currency industries.
Kalsi said that the reason for terminating the contract was due to increased investment in competitors, and that there were no political considerations.
However, Reuters, citing two sources familiar with the matter, reported that some concerns have been raised within Kalsi about the potential ramifications of the Democratic Party taking control of both the House and Senate in the midterm elections.
Trump Jr. was hired as a strategic advisor to Kalci in January last year, just before President Trump's second inauguration.
Trump Jr. has also served as an advisor to rival Polymarket, and his venture capital firm 1789 Capital has expanded its investment, including leading Polymarket's latest investment round last summer.
“After his firm made a significant investment in a competitor last summer, the parties mutually agreed to end their advisory relationship,” a Kalci spokesperson said. “We appreciate the contribution he has made in helping us market our clients to more clients.”
Prediction market platforms such as Calci and PolyMarket attracted attention as they reflected a high probability of President Trump winning during the 2024 US presidential election, unlike existing opinion polls.
Since the launch of the Trump administration, the Commodity Futures Trading Commission (CFTC) has taken a regulatory stance favorable to prediction markets, and related industries have grown rapidly.
However, as the Democratic Party takes control of the House and Senate of Congress, there is a possibility that scrutiny of the relationship between the Trump family and the prediction market industry will increase.
Democratic Senator Elizabeth Warren has pledged to strongly crack down on insider trading in prediction markets.
What to Watch
AI outlook — possibilities, not facts
Democrats are likely to launch an investigation into business ties between the Trump family and the prediction markets industry
Likely · Within weeks
Open Questions
- When and specific terms will end the advisory relationship between Kalci and Trump Jr.
- Target and scope of investigation announced by the Democratic Party
- A detailed implementation schedule for Rep. Elizabeth Warren's plan to crack down on insider trading.
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