US President Donald Trump has openly defended decentralized cryptocurrency prediction markets, which have recently faced intensifying pressure from various state authorities. The head of state publicly voiced his support for the Commodity Futures Trading Commission (CFTC) Chairman Michael Selig in his pursuit to secure exclusive federal oversight over these crypto-betting platforms. Trump emphasized the critical importance of keeping sole regulatory authority within the CFTC to ensure that these prediction networks can continue to thrive.

The need for such high-level intervention arose from an ongoing conflict involving popular platforms like Polymarket and Kalshi, as well as major crypto exchanges such as Coinbase and Gemini that offer users access to these markets. A multitude of US states, including Nevada, New York, Washington, and Illinois, have launched legal challenges, claiming that these services violate local gambling laws. Nevertheless, CFTC Chairman Michael Selig, a Trump appointee, has actively moved forward with crafting federal regulations for the sector, asserting broad agency powers despite local resistance. The president reiterated his firm commitment to the broader digital asset industry, declaring the US the world's crypto capital and vowing not to let other nations displace American dominance.

The situation is further complicated by a recent investigative report from The New York Times, which alleged that CFTC officials actively lowered regulatory barriers for firms connected to the president's family, including Polymarket. Journalists traced the connection through investments in Polymarket by 1789 Capital, a firm partially owned by Donald Trump Jr., who also serves as an advisor to the betting platform. Although the White House denied the findings, this domestic debate unfolds amid a tightening global crackdown on prediction platforms. While the US moves toward centralized federal oversight, nations like Spain, India, and Indonesia have joined a growing list of countries blocking these services due to Polymarket and Kalshi lacking standard gambling licenses.