Trump Vows to Protect Crypto Industry and Ensure Prediction Markets ‘Thrive’
By Kyla Guilfoil, NBC News — May 26, 2026
Former President Donald Trump emphatically pledged on Tuesday to safeguard the cryptocurrency sector and secure the Commodity Futures Trading Commission’s (CFTC) sole regulatory authority over prediction markets, despite growing resistance from several U.S. states.
In a post on his social media platform Truth Social, Trump underscored the critical need to maintain the CFTC’s “exclusive authority” over prediction markets and pledged that under his leadership, these markets would flourish with clear, robust regulations described as the “Gold Standard for the States.” He stressed that the United States must remain the global leader in this burgeoning financial sector.
“It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive,” Trump wrote. “Other Countries are after this new form of Financial Market, and we want to remain at the top.”
The former president also highlighted the country’s current status as the “Crypto (Bitcoin, etc.) Capital of the World,” warning that foreign competitors are actively attempting to supplant the U.S. but affirming his commitment to preventing that shift.
The Divide Over Regulation: Federal vs. State Authority
Trump’s statements come amid heightened tensions regarding the correct scope of regulatory power over prediction markets—platforms that allow users to bet on the outcome of future events such as elections, commodity prices, or sports. While the federal government, primarily through the CFTC, claims jurisdiction and a desire to regulate these platforms similarly to securities and commodities markets, a growing number of states challenge this stance.
Several state governments and attorneys general argue that prediction markets are effectively operating as unlicensed gambling venues and should be treated like casinos or lotteries, regulated strictly at the state level according to gaming laws.
This year has seen significant pushback from state officials. Just last week, Minnesota Governor Tim Walz, a Democrat, signed pioneering legislation banning prediction market sites within the state’s borders. In response, the Trump administration initiated a federal lawsuit asserting the CFTC’s jurisdiction over the matter.
Similarly, New York Attorney General Letitia James, a longtime adversary of Trump, recently sued cryptocurrency exchanges Coinbase and Gemini. She accused them of operating illegal gambling ventures through their prediction market platforms. The exchanges maintain they fall under federal regulatory oversight, not state controls.
Trump directly criticized Walz and James in his Truth Social message, signaling further political conflict over the future of this industry.
Conflict of Interest Raises Questions
Trump and members of his family have notable financial ties to both the prediction market and cryptocurrency industries. This includes investments in World Liberty Financial, a crypto company, as well as connections to major event-contract betting platforms like Kalshi and Polymarket. Donald Trump Jr., the former president’s eldest son, is linked to both Kalshi and Polymarket, two leading firms in the prediction market space.
Recent Investigations and CFTC’s Role
The New York Times recently published a detailed investigation revealing that the CFTC has played a significant role in fostering prediction markets, frequently easing regulatory enforcement on digital currencies. The report highlighted internal agency moves to reduce career officials who traditionally advocated for stricter oversight.
As the debate intensifies, the regulatory fate of prediction markets remains uncertain. The evolving legal battle over whether these platforms should fall under federal commodity market rules or state gambling laws has major implications for the crypto industry and the emerging financial innovation these markets represent.
Conclusion
With states increasingly challenging the status quo, the coming months promise a fierce legal and political showdown over who controls the future of prediction markets and cryptocurrency regulation in the United States. Trump’s vow to protect these sectors underscores the high stakes for America’s position in the global financial ecosystem.
For further coverage and updates on this developing story, stay tuned to NBC News.