- President Trump said the CFTC has “exclusive authority” over prediction markets and reiterated his commitment to keeping the US the “crypto capital of the world.”
US President Donald Trump just voiced out his stance on which agency should exercise oversight over prediction markets. He also reaffirmed his goal of keeping America as the “crypto capital of the world.”
CFTC Oversight on Prediction Markets
On Tuesday evening, Trump stated on Truth Social that the Commodity Futures Trading Commission (CFTC) must maintain its “exclusive authority” over prediction markets. He called it a “critically important” distinction to prevent regulatory overreach from other agencies and state officials.
The president specifically named New Jersey Governor Chris Christie, New York Attorney General Letitia James, Minnesota Governor Tim Walz, and Illinois Governor Jay Robert “JB” Pritzker as individuals trying to curtail the sector’s growth. He explicitly referred to them as “scum” who should not be allowed to set the rules.
Trump said that the US can’t afford to lose its early advantage in the booming industry. It follows the mentioned individuals’ crackdown on prediction markets like Polymarket and Kalshi. The opposition argued that they are unregulated, illegal gambling platforms that lack consumer protections, are prone to market manipulation, are rife with insider trading, and encourage predatory behavior.
Polymarket notably gained mainstream exposure during the November 2024 US elections for going against standard surveys, as the latter forecasted former Vice President Kamala Harris clinching the presidency. The decentralized prediction market platform correctly reflected the opposite, which carried over to the actual poll results.
There’s growing criticism from the public and lawmakers over the Trump family significantly profiting from their investments in prediction markets. However, there are no public records or financial disclosures supporting such assumptions yet.
The US Becoming the Crypto Capital of the World
Along the way, Trump reiterated his commitment to strengthening the USA’s position in digital assets. He claimed that the nation is already the “crypto (Bitcoin, etc.) capital of the world,” but other countries are racing to surpass it.
The president pointed out that he won’t allow the US to lose its spot in crypto. Additionally, he praised CFTC Chair Mike Selig for doing a great job in keeping the USA’s advantage in digital assets.
While the Trump family has no known direct ties to decentralized prediction markets at the moment, the president’s public financial disclosures have revealed significant investments in the broader crypto sector. This has become a major point of contention in the pending Clarity Act, as lawmakers seek to insert ethical provisions to prevent the president, senior elected officials, and their families from actively conducting businesses, holding investments, or engaging in crypto-related activities to avoid conflicts of interest.
