Donald Trump Crypto Push Backs CFTC for Prediction Markets Like Polymarket, Kalshi

Key Insights:

• Trump crypto push comes as he aims to make the United States as the global leader in crypto and digital financial markets.
• Prediction market platforms Polymarket and Kalshi have seen rapid growth under the Trump administration, reporting $51 billion in trading volumes.
• Despite expansion efforts into markets like Japan, prediction market platforms are facing growing regulatory scrutiny globally.

U.S. President Donald Trump backed federal oversight of prediction markets as his administration expanded support for the crypto sector. Trump said the Commodity Futures Trading Commission should retain authority over platforms such as Polymarket and Kalshi.

The statement arrived as prediction market activity accelerated across crypto-linked financial products. Trading volumes on the platforms climbed sharply during the past year despite growing regulatory pressure overseas.

Donald Trump Crypto Agenda Supports Prediction Markets

Trump said it remained “critically important” for the CFTC to maintain exclusive jurisdiction over prediction markets. He argued that platforms such as Polymarket and Kalshi should continue operating and expanding in the United States.

In a Truth Social post, Trump said his administration was developing clearer regulatory standards for the sector. He described the framework as necessary for maintaining U.S. leadership in digital financial markets.

Trump also linked prediction markets to his broader crypto policy agenda. His administration repeatedly positioned the United States as a major hub for blockchain and digital asset businesses.

The latest comments reinforced ongoing federal support for crypto-related financial infrastructure. That approach contrasted with state-level efforts attempting to restrict betting and prediction-based products.

Trump Crypto Push Helps Polymarket, Kalshi

Prediction markets like Polymarket and Kalshi have registered massive growth during the Trump administration. The size of these markets has surged to $51 billion in volume last year, with projections likely to reach $240 billion.

Polymarket operates in the US legally with a CFTC license. On the other hand, Kalshi currently controls an estimated 90% share of the domestic U.S. prediction market sector.

Recently, Donald Trump and the CFTC have also expressed support for prediction market platforms. This includes taking legal action against states such as Minnesota and New York that attempted to restrict or ban their operations.

Trump’s crypto policy notes that the federal oversight of prediction markets is essential to have, over the individual state gambling regulations.

A latest report from WSJ also showed that suspicious betting activity tied to political developments and military operations, is increasing on prediction markets. According to the report, authorities are seeking information from platforms like Polymarket and Kalshi regarding wagers connected to political events and military related developments.

Apart from the U.S, Polymarket is now seeing a potential entry into Japan by 2030. The platform has appointed a representative in the Asian country to lobby for the authorization of prediction markets.

However, in other areas of the world, Polymarket is facing some rejection. After India, markets like Indonesia and Spain have also decided to ban its use.

Global Expansion Faces Regulatory Resistance

Polymarket also expanded lobbying efforts outside the United States. Reports indicated the company aimed to enter Japan’s market by 2030 through local representation and regulatory engagement.

At the same time, regulators in several countries moved against prediction market platforms.

Reuters reported that Indonesia blocked access to Polymarket during a wider crackdown on online gambling activity. Authorities said prediction-based speculation violated local gambling regulations.

The decision followed growing public attention around markets tied to Indonesian political events, including speculation involving President Prabowo Subianto’s presidency.

Spain also ordered internet service providers to restrict access to Polymarket and Kalshi. Regulators said the platforms offered betting-related services without authorization under domestic laws.

The contrasting regulatory approaches highlighted the growing divide between U.S. crypto policy and overseas enforcement efforts. While the Trump administration backed federal support for prediction markets, several international regulators continued treating the sector as unauthorized gambling activity.

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