Trump Pledges to Protect Cryptocurrency Industry, Supports CFTC Independent Regulation of Prediction Markets

U.S. President Trump said on Tuesday that it is essential to maintain the Commodity Futures Trading Commission's (CFTC) "sole authority" over the prediction market, promising to protect the cryptocurrency industry. He posted on Truth Social, saying that the United States is setting "gold standard" rules for these emerging markets.

"It is crucial to uphold the CFTC's sole authority over prediction markets, which will ensure the industry's continued prosperity."

Trump stated that other countries are chasing this new type of financial market, and the U.S. wants to continue to stay ahead. He also put cryptocurrencies in the same framework, saying that the U.S. is currently the "world's cryptocurrency capital," and other nations are trying to replace the U.S., but "we won't let that happen."

This statement comes after an investigation published by The New York Times last Sunday. The report said, in recent years, the CFTC has vigorously promoted the development of prediction markets while significantly easing regulatory enforcement on digital assets, including significantly reducing staff and marginalizing professional officials.

The report also disclosed that Trump and his family have direct financial connections with the prediction market industry and several crypto projects, including the crypto platform World Liberty Financial. Trump's eldest son, Donald Trump Jr., has close ties with Kalshi and Polymarket, two leading event betting platforms.

The prediction market is currently facing regulatory pressure from state governments. Several states have accused these platforms of engaging in gambling businesses without permits, violating state gambling laws. The future of the industry largely depends on whether jurisdiction is ultimately held by the federal or state governments. Trump and his allies at the CFTC argue that prediction markets are essentially financial markets and should be uniformly regulated by the federal level, like securities and commodity markets.