Trump Vows to Protect Crypto Industry and Ensure Prediction Markets ‘Thrive’
On May 26, 2026, President Donald Trump emphasized his commitment to safeguarding the cryptocurrency sector and firmly establishing federal oversight over prediction markets, asserting that the Commodity Futures Trading Commission (CFTC) must retain “exclusive authority” over these platforms.
Speaking through his Truth Social account, Trump declared, “It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive.” He stressed that under his leadership, clear regulatory “rules of the road” are being set, which he described as the “Gold Standard for the States.”
Trump highlighted the competitive global landscape for these emerging financial arenas. “Other countries are after this new form of Financial Market, and we want to remain at the top,” he said, underscoring the need to sustain U.S. dominance in cryptocurrency and prediction markets. “Where we are currently the Crypto (Bitcoin, etc.) Capital of the World, other Countries are trying diligently to replace us in that capacity, but we won’t let that happen.”
This pledge came in the wake of an investigative report published by The New York Times revealing that the CFTC has actively promoted prediction markets while relaxing regulatory enforcement related to digital currencies. The report indicated internal shifts at the commission, including reductions in personnel and sidelining of seasoned officials, purportedly to support industry growth.
The growing dispute over regulatory authority is intensifying across the nation. Prediction markets — platforms where users can bet on the outcomes of events ranging from elections to sporting contests — face allegations from various states accusing them of operating as illegal, unlicensed casinos in violation of local gaming laws.
While the Trump administration and the CFTC assert that prediction markets are legitimate financial markets subject to federal regulation in a manner similar to securities and commodities, several state governors and attorneys general contend that these markets are essentially gambling operations deserving state-level oversight akin to casinos and lotteries.
Recently, Minnesota Governor Tim Walz signed legislation banning prediction market sites from operating within his state — a landmark move echoed by other jurisdictions. The Trump administration responded by filing a lawsuit to uphold the CFTC’s federal jurisdiction over these markets. In his social media statement, Trump criticized Walz and pointed to other state officials, including New York Attorney General Letitia James, who have taken legal actions to regulate or restrict prediction markets.
James, a prominent political adversary of Trump, has initiated lawsuits against cryptocurrency firms Coinbase and Gemini, alleging that their prediction market activities constitute unauthorized gambling. Both companies assert they fall under federal regulation, not state law.
The future of prediction markets and crypto regulation hangs in the balance as this legal and political debate continues to unfold across Washington and state capitals. Trump’s stance signals continued federal efforts to maintain regulatory control and promote the growth of these cutting-edge financial technologies.
About the Author:
Kyla Guilfoil is a breaking news reporter covering politics for NBC News Digital.