Trump Urges Passage of Clarity Act in White House Crypto Meeting as Prediction Market Firms Are Excluded
TL;DR — Trump pressed for the Clarity Act at a White House crypto meeting that excluded prediction market firms despite prior reports of their inclusion. The event preceded the CFTC’s first Innovation Advisory Committee session addressing emerging technologies. This separation highlights distinct regulatory paths for crypto and event contracts.
SCCG Take — Prediction markets must pursue their own federal-versus-state battle separate from crypto advances. The CFTC committee offers the next indicator for operators and regulators on permissible innovation boundaries.
President Donald Trump used a White House meeting with cryptocurrency and financial-industry executives to press Congress to pass the Clarity Act. Prediction market companies were shut out of the event despite earlier indications they would participate.
Trump told attendees that Congress should pass a “fair version” of the Clarity Act. The legislation seeks to define digital assets more clearly and assign jurisdiction to the SEC or CFTC. The session occurred one day before the CFTC‘s inaugural Innovation Advisory Committee meeting, where crypto and prediction markets were slated for discussion.
A person familiar with the meeting told The Hill that the administration limited the focus to crypto. This exclusion stands out for companies such as Kalshi and Polymarket, which have positioned event contracts as financial products while encountering resistance from state gambling regulators and traditional sportsbook operators.
Crypto Framework Push and Attendees
Coinbase CEO Brian Armstrong, Robinhood CEO Vlad Tenev, Kraken co-CEO Arjun Sethi, Intercontinental Exchange CEO Jeffrey Sprecher, SEC Chair Paul Atkins, CFTC Chair Michael Selig and White House crypto adviser Patrick Witt attended alongside Trump. The president’s core message centered on establishing a permanent regulatory framework. The Clarity Act would draw a statutory line between securities and commodities.
The effort follows the SEC‘s proposal on Tuesday for a new crypto framework to ease token issuance and capital raising. Broader legislation remains stalled in the Senate. Trump had previously voiced support for prediction markets, arguing in May that CFTC authority should hold and the sector should expand domestically.
The Regulatory Distinction Ahead
Prediction markets face a separate contest over whether event contracts on sports, politics and other outcomes constitute federal derivatives or state-regulated wagers. Selig has framed the advisory committee as a departure from the prior administration’s “regulating by enforcement” posture, calling for rules that permit innovation in blockchain, artificial intelligence and prediction markets.
As reported by Yogonet International, analysts do not read the exclusion as a reversal of Trump’s stance. It does, however, reinforce that prediction markets constitute a distinct issue even as the administration prioritizes the United States as a hub for emerging financial technologies. Operators in the space will watch the CFTC committee for concrete signals on federal oversight parameters.
Reporting: Yogonet International
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Prediction markets just learned they're fighting a different regulatory war than crypto — and they're fighting it alone.
We've spent three decades watching jurisdictional turf battles kill momentum. This meeting made it official: crypto gets the Clarity Act track, prediction markets get the CFTC-versus-state-gambling slugfest. Two industries, two paths, and operators in both camps need to adjust strategy now — not after the next enforcement action drops.
- White House crypto meeting excluded Kalshi, Polymarket despite earlier reports of inclusion
- Trump pressed for Clarity Act to split SEC/CFTC authority on digital assets
- Prediction markets face separate federal-derivatives-versus-state-gambling jurisdictional fight
SCCG angle: SCCG works both sides of this divide. Our regulatory advisors help prediction market clients navigate state-by-state gaming commissions while our fintech partners position for federal frameworks. When the path splits, you need guides who've walked each fork — we connect clients to the right counsel, the right regulator relationships, and the right compliance architecture for whichever track they're on.
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