Trump Pledges to Protect Crypto and Ensure Prediction Markets ‘Thrive’ Amid Regulatory Battle
By Kyla Guilfoil, NBC News — May 26, 2026
Former President Donald Trump has once again taken a strong stance in support of the cryptocurrency industry and prediction markets, emphasizing the importance of federal oversight and pledging to protect these burgeoning financial sectors from restrictive state-level regulations.
In a statement posted Tuesday on Truth Social, Trump underlined the necessity of maintaining the Commodity Futures Trading Commission’s (CFTC) “exclusive authority” over prediction markets, which allow users to place event contracts on various future outcomes. He asserted that under his leadership, clear and robust “rules of the road” are being established, which he described as the “Gold Standard for the States.”
“Other countries are after this new form of financial market, and we want to remain at the top,” Trump added. He further highlighted the United States’ current leadership position as the “Crypto Capital of the World,” noting that “other countries are trying diligently to replace us in that capacity, but we won’t let that happen.”
State vs. Federal Jurisdiction at the Heart of Debate
Trump’s remarks come as prediction markets face increasing legal scrutiny from several state governments. Many of these states, including Minnesota and New York, argue that prediction markets function like gambling operations and should therefore fall under state regulatory authority, similar to casinos and lotteries.
Minnesota Governor Tim Walz, a Democrat, recently signed landmark legislation banning prediction market platforms within the state—a move the Trump administration has contested by filing a lawsuit seeking to reaffirm the CFTC’s regulatory dominance in this space.
New York Attorney General Letitia James, a frequent political adversary of Trump, has also intensified regulatory actions against the crypto and prediction market industries. James filed lawsuits against major cryptocurrency firms Coinbase and Gemini, accusing them of operating illegal gambling ventures through their prediction market platforms. These firms maintain that they are federally regulated entities and not subject to state gambling laws.
The CFTC’s Role and Industry Ties
The CFTC’s expanded role in overseeing prediction markets has been underlined by an investigative report by The New York Times, published Sunday. The report detailed how the commission has consistently supported prediction markets’ growth while easing enforcement actions on digital currencies. It noted internal personnel changes within the CFTC that have soft-pedaled regulatory scrutiny, including sidelining career officials opposed to deregulation.
Notably, Trump and his family have deep financial connections to the prediction market sector and cryptocurrency ventures. Trump’s eldest son, Donald Trump Jr., is linked to Kalshi and Polymarket, two of the largest platforms in the event-contract betting industry. Additionally, Trump’s family is connected to World Liberty Financial, a crypto company involved in the space.
A Growing Political and Regulatory Clash
At the heart of the ongoing regulatory battle is a fundamental disagreement over the nature of prediction markets. Supporters like Trump and the CFTC characterize these platforms as legitimate financial markets akin to securities or commodity markets, advocating for uniform federal regulation. Opponents, including various governors and state attorneys general from both major political parties, see them as essentially offering gambling services that must be controlled at the state level.
This contentious issue is playing out both in federal courtrooms and state legislatures across the country, with significant implications for the future of crypto assets and prediction market platforms. The outcome will determine whether these industries operate under a centralized federal framework or face a patchwork of regulatory environments across individual states.
Looking Ahead
As Trump doubles down on his commitment to protecting and fostering the growth of crypto and prediction markets, the ongoing legal tussle between federal authorities and state regulators shows no signs of abating. With competitors worldwide seeking to capture dominance in these innovative markets, the United States’ regulatory decisions in the coming months and years will be critical for the industries’ prospects—and their role within the broader financial ecosystem.
Contact the author Kyla Guilfoil at NBC News Digital for further updates on politics and financial market regulation.