We explain what has changed in the relationship between the US president and prediction markets, which have been difficult to regulate.
President Donald Trump has publicly backed the Commodity Futures Trading Commission (CFTC) as the sole federal regulator of prediction markets. In a post on Truth Social, he called this “critical” to maintaining US leadership.
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Trump Attacks States and Defends the Industry
The president stated that under his leadership, “golden standards” of regulation will be established that states must follow. He sharply criticized governors and attorneys general, including Tim Walz and Letitia James, who have filed lawsuits against Kalshi, Polymarket, Crypto.com, and Robinhood.
“Other countries are trying to take this new financial market from us. We will not allow it. America is the crypto capital of the world, and we will keep it that way,” Trump emphasized.
Just a month ago, Trump was more restrained about prediction markets. However, his son Donald Trump Jr. is an investor and advisor to both Polymarket and Kalshi.
Read more: What’s Happening With Prediction Markets in the US — A Look at Recent Initiatives
Spain Blocks Polymarket and Kalshi
Spain has become the third country in the past month to fully restrict access to Polymarket and Kalshi. The Ministry of Consumer Affairs declared the platforms illegal gambling operations. The block will take effect within 7 to 10 days and will last at least 3 to 4 months.
Earlier, India and Indonesia introduced similar measures. Their authorities also classified prediction markets as unlicensed gambling. Polymarket is currently restricted in dozens of countries, including Russia, Singapore, Belgium, and Italy.
What’s Next for Prediction Markets?
Trump’s position and the CFTC’s stance create a serious conflict between federal and state regulation. While Democrats in Congress demand a tough investigation into insider trading on the platforms, the Trump administration is clearly charting a course toward maximum support for the industry.
Learn more: Best Prediction Markets 2026 — Regulated Access, Crypto Liquidity and Risk Filters
