Trump targets Tim Walz, Letitia James in crypto fight: ‘Can’t have scum setting rules’

WASHINGTON, DC: President Donald Trump on Tuesday, May 26, escalated the growing battle over the regulation of prediction markets and cryptocurrency platforms, backing federal oversight of the industry while sharply criticizing several Democratic leaders pushing state-level restrictions.

In a Truth Social post, Trump defended the Commodity Futures Trading Commission’s authority over prediction markets and pledged to ensure the US remains the global leader in cryptocurrency and digital financial markets.

His remarks come as several states, including Minnesota and New York, move to crack down on platforms such as Kalshi, Polymarket, and Crypto.com, arguing they violate state gambling laws.

Trump backs crypto prediction markets amid state crackdown

Trump framed the issue as a fight over who should control the future of emerging financial technologies and prediction-based trading platforms. “It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive,” Trump wrote.

“Under my leadership, we are setting ‘rules of the road’ that are the Gold Standard for the States.”

The president also directly targeted several Democratic officials and longtime political opponents, including former New Jersey Governor Chris Christie, New York Attorney General Letitia James, Minnesota Governor Tim Walz, and Illinois Governor JB Pritzker.

“We cannot have SCUM like Chris Christie, Letitia James, Tim Walz, and JB Pritzker setting the rules!” Trump wrote.

Trump argued that prediction markets and cryptocurrencies represent a growing global industry that the US cannot afford to lose to competing nations. “Other Countries are after this new form of Financial Market, and we want to remain at the top,” he said.

“Likewise, and even more importantly, where we are currently the Crypto (Bitcoin, etc) Capital of the World, other Countries are trying diligently to replace us in that capacity, but we won’t let that happen.”

The president also praised CFTC Chairman Mike Selig, who has supported the industry’s position that prediction markets fall under federal financial regulation rather than state gambling oversight.

“It is a major Industry, and we must protect it. Mike Selig, CFTC Chairman, and respected by all, is doing a great job. Thank you Mike!” Trump wrote.

States target prediction markets with new gambling laws

Supporters of the industry, including Trump allies and CFTC officials, argue that event-contract trading platforms operate like financial exchanges and should be regulated exclusively at the federal level.

States, however, increasingly contend that many of the contracts function as gambling products subject to local gaming laws.

Minnesota recently became the first state to pass legislation explicitly banning prediction market platforms, prompting legal action from the Trump administration seeking to assert federal jurisdiction through the CFTC.

Illinois officials have similarly issued cease-and-desist orders targeting several operators. Pritzker responded to Trump’s comments by defending the state’s actions.

“Illinois took action to prevent and ban insider trading with online prediction markets in our state,” Pritzker wrote on X.

“The most corrupt President in our nation’s history wants to make sure states like ours can’t regulate prediction markets so his family and administration can keep profiting.”