U.S. President Trump posted on Truth Social on May 28, claiming that former SEC Chair Gary Gensler and his so-called “anti-crypto army” nearly destroyed the U.S. crypto industry, but that he saved it all. Trump pledged to develop a “future-facing” digital asset market structure framework, so that crypto opponents would not be able to easily overturn it, and said the United States has become the “crypto capital of the world.”
Full verbatim excerpt of Trump’s Truth Social post
In the post, Trump wrote: “Former SEC Chair Gary Gensler and the so-called anti-crypto army nearly destroyed the U.S. crypto industry; they pushed Bitcoin, crypto perpetual contracts, and innovation overseas—but I saved all of it. Now, America has become the crypto capital of the world, and builders and entrepreneurs are coming back to their United States. Under my leadership, we will create a future-facing digital asset market structure framework that will make it impossible for crypto opponents to easily overturn cryptocurrency again.”
In an earlier post as well, Trump said: “The CFTC’s exclusive jurisdiction over prediction markets must be maintained, and these markets must thrive. Under my leadership, we are setting the gold standard for the states. Other countries are copying this new kind of financial market, and we want to stay ahead.”
CFTC jurisdiction dispute: confirmed legislation and legal actions
Minnesota Governor Tim Walz (Democrat) recently signed a law banning prediction market websites from operating in Minnesota, marking the first such legislation nationwide. The Trump administration immediately filed a lawsuit to preserve the CFTC’s jurisdiction over the state. In a May 27 post, Trump singled out Walz and state officials who regulate prediction markets through their actions, including New York State Attorney General Letitia James. James has recently filed a lawsuit against Coinbase and Gemini, accusing the two companies of “operating a gambling business” in New York through prediction market platforms.
Reported financial ties involving the Trump family
Reports show that Trump and his family have financial links to the prediction market industry and multiple crypto companies, including the crypto company World Liberty Financial. Trump’s eldest son, Donald Trump Jr., has connections to the prediction market platforms Kalshi and Polymarket. A Sunday investigation by The New York Times also noted that while the CFTC was pushing prediction markets, it streamlined committee staff and sidelined senior officials.
FAQs
What exactly does the “future-facing” digital asset framework Trump promised include?
In his Truth Social post, Trump said he would create a “future-facing” digital asset market structure framework to prevent crypto opponents from easily overturning it, but the post did not disclose specific legislative provisions or a timeline. The framework’s specific details are pending the release of later formal legislative proposals.
What is the core dispute between the CFTC and the states over jurisdiction of prediction markets?
Trump and the CFTC argue that prediction markets should be regulated at the federal level and treated as part of the commodity markets. Increasing numbers of governors and state attorneys general from both parties believe that betting on event contracts is fundamentally gambling and should be regulated by state governments. Minnesota’s first ban law has prompted the Trump administration’s lawsuit; the outcome of the court ruling has yet to be announced.
What specific SEC enforcement actions were taken during Gensler’s tenure?
According to reports, during Gensler’s tenure, the SEC took aggressive enforcement actions against multiple crypto companies, including Coinbase and Binance, on the grounds that many digital assets meet the definition of securities. Critics argue that the resulting regulatory uncertainty has forced some companies to relocate to places such as Singapore, Dubai, and the European Union.
