Trump Vows to Protect Cryptocurrency Industry and Ensure Prediction Markets ‘Thrive’
May 26, 2026 — Former President Donald Trump reiterated his commitment to defending the cryptocurrency industry and securing federal oversight of prediction markets, positioning these emerging financial platforms as vital components of the future economy.
Speaking out on Truth Social Tuesday, Trump emphasized the importance of maintaining the Commodity Futures Trading Commission’s (CFTC) "exclusive authority" over prediction markets, which involve betting on the outcomes of events, ranging from politics to sports and beyond. He asserted that under his leadership, “rules of the road” were established as the "Gold Standard" for state governments to follow.
“It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive,” Trump wrote. He underscored the United States’ leading position, both in cryptocurrency—specifically Bitcoin—and in prediction markets, warning that other nations are actively seeking to supplant the country’s role as a global financial pioneer.
“Other Countries are after this new form of Financial Market, and we want to remain at the top,” Trump said. “Likewise, and even more importantly, where we are currently the Crypto Capital of the World, other Countries are trying diligently to replace us in that capacity, but we won’t let that happen.”
Federal vs. State Regulation: A Contentious Legal Battle
Trump’s pledge comes amid a growing legal and regulatory tug-of-war between federal authorities and state governments over how to govern prediction markets and cryptocurrency platforms.
The CFTC, which supervises markets involving commodities and derivatives, asserts that prediction markets are a form of financial market and should be federally regulated, aligning their oversight with other securities and commodity exchanges. This stance is bolstered by recent moves within the commission to support such markets, including easing enforcement on digital currencies.
However, numerous states are increasingly challenging this federal approach. Several governors and attorneys general from both major political parties contend that prediction market platforms, especially those involving sports, function more akin to gambling operations than financial exchanges and thus should be regulated under existing state gaming laws.
Most notably, Minnesota Governor Tim Walz, a Democrat, recently signed legislation banning prediction market platforms from operating within the state—a first-of-its-kind move in the U.S. The Trump administration swiftly responded by initiating a lawsuit against Minnesota to uphold the CFTC’s regulatory authority, signaling a high-stakes legal showdown.
New York Attorney General Letitia James, a long-standing political opponent of Trump, has been particularly active in targeting crypto firms. James has filed lawsuits against well-known companies Coinbase and Gemini, alleging they facilitate illegal gambling via prediction market products. Both companies maintain they are federally regulated and challenge the state’s jurisdiction.
Trump’s Personal and Family Ties to Crypto and Prediction Markets
The president’s advocacy for the crypto industry and prediction markets also aligns with financial connections involving himself and his family. Trump has established links to the prediction market sector and multiple crypto ventures, including a crypto company called World Liberty Financial.
In addition, Donald Trump Jr., the former president’s eldest son, maintains relationships with major prediction market platforms such as Kalshi and Polymarket, two of the industry’s most prominent players. These connections add an additional layer of complexity to the ongoing regulatory debates.
Looking Ahead
As the controversy unfolds, the future of prediction markets and cryptocurrencies in the United States hinges on the outcome of conflicts over jurisdiction and regulatory frameworks. Will federal regulators retain exclusive control, or will individual states assert their rights to protect consumers under gaming laws?
Trump’s commitments signal sustained political backing for federal oversight and the safeguarding of crypto’s prominence in the U.S. economy. However, as states push back, the battle over the legal classification and control of these innovative financial markets is likely to intensify in the months ahead.
Report by Kyla Guilfoil, NBC News Digital