Trump says that the US government must protect crypto or risk losing out on its lead to other countries working to overtake it. He further pledged to maintain the CFTC’s jurisdiction over pre
The US must protect crypto to maintain its position as the global crypto capital, President Donald Trump says.
In a post on Truth Social, the Republican leader said that the US is the outright leader in crypto, but “other countries are trying diligently to replace us in that capacity.” This will not happen under his administration, he says.
“Crypto is a major industry, and we must protect it,” he added.
According to Trump, one of the vital ways to protect crypto is to ensure that the CFTC gets jurisdiction over the sector. For a decade, the SEC has been the de facto regulator, and its approach of regulation by enforcement has hurt the sector. The securities agency has brought several dozen lawsuits against crypto firms, even when the law was vague on their activities.
Trump’s push is set to be realized with the passing of the CLARITY Act. The bill, which was recently passed by the Senate Banking Committee, hands power over the crypto sector to the CFTC, with the SEC only overseeing specific crypto security sections. The Act’s passing is now in jeopardy, as we reported, after being pushed to the busy June-July schedule, but the White House has been pushing for it, giving it an edge over other bills.
Beyond crypto, Trump also wants the US to protect prediction markets. He stated:
“It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive. Under my leadership, we are setting “rules of the road” that are the Gold Standard for the States.”
Just like with crypto, Trump’s interest in protecting prediction markets has a selfish motive. His family’s social media company, Truth Social, announced that it would launch prediction markets under Truth Predict, but they have yet to launch.
More significantly, his eldest son, Donald Trump Jr., has ties to both Polymarket and Kalshi, the two leading prediction platforms. His company, 1789 Capital, is an investor in Polymarket, and he is a paid advisor to Kalshi.
Trump’s renewed support for prediction markets comes at a time when some regulators are clamping down on the sector. In the US, Minnesota recently enacted a law that bans prediction markets in the state. In his post, Trump specifically called out Minnesota Governor Tim Walz as one of the leaders that the US cannot hand power over prediction markets to.
Meanwhile, Trump’s Truth Social recently withdrew its application for a Bitcoin ETF as the sector continues to record high net outflows in May.
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