The White House plans to bring together executives from the crypto industry and prediction market companies on August 19 to discuss the regulatory issues digital markets face. President Donald Trump and Commodity Futures Trading Commission Chairman Michael Selig are both expected to attend. Still, the White House hasn’t put out a public agenda or finalized the list of guests, so for now, this meeting remains expected, not confirmed as a policy move. The meetings come with the CLARITY Act, a broad market-structure bill for digital assets, stalled in the Senate. A procedural vote is scheduled for September 15, after lawmakers return from the August recess.
SEC Chairman Paul Atkins is confirmed to attend, according to an agency spokesperson. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick may also be present. On the industry side, expected attendees include the chief executives of Coinbase, Ripple, Gemini, Robinhood, Polymarket and Kalshi, alongside a16z, Chainlink, Paradigm and the Digital Chamber. Executives from Kraken, the New York Stock Exchange and Nasdaq have been invited, and CME Group, Intercontinental Exchange and the DTCC may attend. The session is set for 2:30pm ET at the Eisenhower Executive Office Building, next to the West Wing.
The timing stands out. Right after, on August 20, the new CFTC Innovation Advisory Committee is set to hold its first meeting. Their agenda includes digital assets, artificial intelligence, and prediction markets. With two meetings back to back, it’s clear the conversation isn’t just about letting these markets expand anymore. The real questions are now about who takes charge, what rules should apply, and how federal and state agencies share the responsibility.
Why Crypto and Prediction Markets Hit the Same Wall
Crypto and prediction markets may operate in different areas, but they face the same regulatory issues. Both operate 24/7, use real-time collateral, rely on automatic settlements, and reach users across state lines. That makes it tough for traditional rules built for specific products and limited geography to keep up. The convener is not neutral on this. Selig has argued the CFTC holds exclusive jurisdiction over event contracts and has sued several states over restrictions on Kalshi and Polymarket. Trump backed that position publicly in May, calling exclusive CFTC jurisdiction “critically important.”
Right now, the crypto industry is asking for more clarity on market structure, how trading platforms register, how stablecoins get classified, oversight of spot markets, and exactly what counts as what under the law. Platforms also want straighter paths for registration and better rules for areas like asset listings, how they handle customer money, and monitoring the market.
Prediction markets, on the other hand, run into an even messier dispute over who gets to regulate them. Some platforms say their event contracts fit under federal commodity derivatives law, but state regulators see contracts on sports outcomes as straightforward gambling. That leaves companies guessing about where they’re allowed to operate and what paperwork they need.
How a platform gets labeled, whether as an exchange, broker, clearinghouse, or gambling outfit, shapes what kind of rules it faces for capital requirements, customer protection, and oversight.
There’s more than one regulator in this system: the CFTC looks after futures and commodity derivatives; the Securities and Exchange Commission (SEC) handles securities; banking regulators focus on deposit and payment systems; while state agencies cover money transmission and gambling. Digital assets can land anywhere depending on how people use them. For event contracts, regulators can take different approaches based on what’s being traded.
Also read: Korea’s FSS Rebuilds Refund System to Cover Crypto Fraud Victims
What the August Meetings Could Deliver
The main work now is to make the rules clearer without weakening how customers are kept safe. Prediction markets cover everything from sports and elections to economic stats and entertainment. Even though these contracts might look alike, the risks they pose and state laws that govern them can be different.
A federal framework could make it easier for businesses, offering consistency nationwide, but it might also mean state gambling laws get bypassed. Letting each state run its own licensing system, on the other hand, could keep platforms fragmented and split liquidity. The big question is how to classify and regulate all these new products.
Crypto has a similar concern with spot token trading. Federal lines of authority here aren’t as obvious as they are for securities and futures. Companies want a clear way to get registered, but regulators have to make sure risky products aren’t disguised as safe bets.
For businesses, the best outcome would be a clear timeline and a breakdown of who is responsible for what. They need to know which agency handles which product, how current platforms can move toward registration, what standards exist for keeping customer funds separate, which licenses are needed to operate across state lines, and when new rules will be open for the public for comments.
But protecting consumers is also critical. Twenty-four-hour trading and highly volatile products can increase risks, from excessive leverage and misleading marketing to real addiction. Prediction markets raise concerns about inside information and fixing results, while crypto platforms still face challenges like asset custody, hacking, and conflicts of interest.
The August 19 meeting can’t change any laws by itself. Even if the President or top regulators back new policies, that doesn’t substitute for Congress, official procedures, or court decisions. Any post-meeting statements shouldn’t be confused with legally binding rules.
The participants in the room matter too. If only the large platforms show up, rules could lean in favor of larger companies, piling pressure on smaller ones. Involvement from state regulators, consumer advocates, academics and the licensed gambling industry would broaden the perspectives in the room. Publishing the attendee list, the agenda, and follow-up notes would make it easier to see what the meeting actually accomplishes.
The CFTC’s August 20 committee meeting brings a formal regulatory layer right after the White House event. Taken together, these gatherings could signal whether U.S. leaders are moving toward clearer, more workable digital market rules or just expressing support for innovation without real action.
