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Read Full BioPresident Donald Trump looks to be cashing in on the recent boom of prediction markets. His social media platform, Truth Social, announced a partnership with Crypto.com.
In a press release, the company announced that its new product technology, “Truth Predict,” will allow users to trade on “major events and milestones, such as political elections, interest and inflation rate changes, commodity prices on gold and crude oil, events across all major sports leagues, and more.”
Devin Nunes, Chairman & CEO of Trump Media, commented, “We are thrilled to become the world’s first publicly traded social media platform to offer our users access to prediction markets.”
He added, “Truth Predict will allow our loyal users to engage in prediction markets with a trusted network while harnessing our social media platform to provide totally unique ways for users to discuss and compare their predictions.”
Rival platforms Kalshi and Polymarket previously made deals with Elon Musk’s xAI. This has mainly been to integrate Grok into the platforms rather than explicitly promote prediction markets on X.
Markets ‘Federally Compliant’ Under CFTC
The announcement added that the event contracts will be offered via Crypto Derivatives North America (CDNA), “with the integration providing a federally compliant way to access CDNA event contracts and make predictions on the outcomes of events, including politics, economics, financials, and sports.”
CDNA has faced legal challenges predominantly related to its sports markets. It was the first platform regulated by the Commodity Futures Trading Commission (CFTC) to launch a market on the Super Bowl early this year. Initially, the CFTC requested that the company suspend its sports markets pending review.
That review, however, has either not taken place or not been completed, as there has been no ruling on the legality of sports markets. The lack of resistance has paved the way for the expansion of markets, which now include parlays, totals, and some prop betting.
The CFTC is still without a permanent chair as the Trump administration deliberates on who should lead the regulator. After initially nominating Kalshi board member Brian Quintenz, Trump has now proposed Michael Selig.
Selig, a high-ranking cryptocurrency regulator, said he will promote “freedom, competition, and innovation” across commodities markets. If he is confirmed, the CFTC will likely not restrict sports, elections, or other prediction markets.
Trump Family Embedded in Prediction Markets
In addition to Trump Media now being firmly embedded in the success of prediction markets, Donald Trump Jr. also serves as a strategic advisor to both Kalshi and Polymarket. The latter survived an FBI and CFTC investigation to relaunch in the US.
In the Truth Social press release, Nunes added, “Trump Media is well-positioned to leverage our strong balance sheet and existing social media capabilities to create a new standard for access to prediction market platforms.
“For too long, global elites have closely controlled these markets – with Truth Predict, we’re democratizing information and empowering everyday Americans to harness the wisdom of the crowd, turning free speech into actionable foresight.”
Crypto.com Pulls Sports Markets in Nevada
Despite the president’s investment, Crypto.com continues to face legal challenges. The platform conceded some ground in the battle, withdrawing its markets from Nevada after a judge refused to grant the company an injunction in its lawsuit against the Nevada Gaming Control Board (NGCB).
The NGCB confirmed last week that CDNA “will not hold open positions in sports event contracts for Nevada residents and will not permit new contracts to be opened.”
The lawsuit was filed in response to the NGCB’s cease-and-desist letter in April. The regulator sent the same order to Kalshi, but the same judge granted Kalshi an injunction before rejecting Crypto.com’s request.
One explanation may be that courts have gradually become sceptical about prediction market platforms’ preemption argument. The companies continue to argue that only the CFTC has authority over their markets and, therefore, state regulators have no power to limit the operations.
The launch of Truth Predict could provide further validation for the legal status of the markets. The NHL also became the first sports league to publicly endorse sports event contracts by partnering with Kalshi and Polymarket. However, the American Gaming Association (AGA) quickly requested that the NFL, MLB, and NBA not follow suit.
As more companies, organizations, and investors partner with these platforms, it is becoming increasingly clear that opponents of prediction markets are losing.
