Trump Backs CFTC and Declares US the Crypto Capital of the World US President Donald Trump (@realDonaldTrump) has publicly backed the Commodity Futures Trading Commission's authority over pre
US President Donald Trump (@realDonaldTrump) has publicly backed the Commodity Futures Trading Commission's authority over prediction markets and reaffirmed his administration's commitment to protecting the crypto industry. In a post on his Truth Social platform on Tuesday, Trump said it is "critically important that the CFTC's exclusive authority over Prediction Markets is maintained, and that they will thrive."
Trump voiced support for CFTC Chair Michael Selig, whom he appointed to lead the derivatives regulator, and used the post to underscore his support for the cryptocurrency industry, describing it as a "major industry." "It is a major industry, and we must protect it," he said, referring to the cryptocurrency market.
Trump also referred to his campaign pledge to make the US the "Crypto Capital of the World," writing: "Other Countries are trying diligently to replace us in that capacity, but we won't let that happen." On setting rules for the sector, he said his administration is establishing "rules of the road" that are the "Gold Standard for the States."
At the heart of the broader dispute is the question of whether prediction market contracts tied to sports and entertainment are financial instruments or gambling products dressed up as novel finance. The CFTC has firmly defended its "exclusive jurisdiction" over prediction market platforms such as Polymarket and Kalshi, having filed lawsuits against Arizona, Connecticut, Illinois, New York and Wisconsin to block state-level bans.
On the other side, a growing number of governors and state attorneys general from both political parties argue that event contract betting, especially on sports, is gambling by another name and should be regulated at the state level, just like casinos and lotteries. Minnesota Governor Tim Walz signed a law banning prediction market sites from operating in the state, a first-of-its-kind piece of legislation, prompting the Trump administration to sue in order to assert the CFTC's authority.
The prediction market industry has grown rapidly under the current regulatory environment, with monthly trading volume rising from roughly $792 million in January 2025 to close to $12.5 billion in January 2026, according to DeFiLlama data. Trump's comments come after a New York Times investigative report found that career officials who raised concerns about Polymarket, Crypto(.)com, and other firms with business ties to the Trump family were pushed out of the agency.
NBC News: Trump pledges to protect the crypto industry and ensure prediction markets thrive | CoinDesk: Trump praises prediction markets, defends CFTC as court cases compound | The Block: President Trump backs CFTC Chair Selig's push to expand prediction market authority
