President Donald Trump is doubling down on his goal of making the United States the “crypto capital of the world,” while also weighing in on a growing national fight over who should regulate prediction markets.
Trump Says CFTC Rules Will Help Crypto ‘Thrive’
In a new statement shared Tuesday on Truth Social, Trump said it is “critically important” that the US Commodity Futures Trading Commission (CFTC) retain “exclusive authority” over prediction markets, and he added that the sector “will thrive” under that approach.
The president also framed the issue as part of building what he described as “rules of the road” that set a “Gold Standard for the States.” He said other countries are pursuing this “new form of Financial Market,” and the US must remain competitive.
Trump tied the prediction market question directly to the broader push for US leadership in crypto, writing that while the US is currently the global “Crypto (Bitcoin, etc.) Capital of the World,” other countries are trying to replace America in that role—and that they “won’t let that happen.”
Trump’s remarks came after an investigation by The New York Times published Sunday that described how the CFTC has played an active role in advancing prediction markets “at virtually every turn.”
The report also alleged that the regulator has softened its enforcement posture toward digital currencies. It said the agency did so by changing internal staffing—specifically culling ranks and sidelining career officials—steps the investigation suggested reflect a more permissive regulatory direction.
States Clamp Down On Prediction Markets
Prediction markets are increasingly on the defensive as states move to restrict them, often arguing they operate like “unlicensed casinos and violate state gaming laws.”
On one side of the debate are Trump and allies within the CFTC, who argue that prediction markets are truly “markets” and should be treated like other federally regulated trading venues, such as securities markets and commodities markets.
On the other side, a growing group of governors and state attorneys general—drawn from both political parties—contend that event contract betting, particularly when it involves sports, is essentially gambling. They argue it should therefore be regulated at the state level in the same way casinos and lotteries are.
Minnesota has become a focal point in this fight. The Democratic governor, Tim Walz, signed a law last week that would ban prediction market sites from operating in the state—described as the first-of-its-kind legislation in the nation. The administration filed a lawsuit aimed at asserting the CFTC’s authority over Minnesota’s decision.
Featured image created with OpenArt; chart from TradingView.com
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