President Trump urges Congress to pass the Clarity Act during a White House meeting with cryptocurrency and financial-industry executives. Although prediction market companies were not included in the event, reports had suggested their participation.

During the meeting, Trump emphasized the importance of Congress passing a “fair version” of the Clarity Act, which aims to provide clearer definitions for digital assets and determine the regulatory jurisdiction of various cryptocurrencies under agencies like the SEC and CFTC.

The meeting took place one day before the CFTC’s inaugural meeting of its Innovation Advisory Committee, which is expected to discuss emerging financial technologies, including cryptocurrencies and prediction markets, as part of wider regulatory conversations.

Interestingly, representatives from prediction markets were not invited to the White House gathering, as The Hill reported that the administration chose to focus solely on cryptocurrencies.

This development was surprising, given that previous reports had suggested prediction market executives might attend the event alongside cryptocurrency and financial-industry leaders. This exclusion is significant for companies like Kalshi and Polymarket, which are introducing event contracts as a new financial product category while encountering opposition from state gambling regulators and traditional sportsbook operators.

Trump has previously shown support for prediction markets. In May, he advocated for maintaining the CFTC’s authority over prediction markets and allowing the sector to expand in the United States.

While prediction markets were absent from the White House discussion, the event brought together key figures from the cryptocurrency and financial sectors.

Participants included Coinbase CEO Brian Armstrong, Robinhood CEO Vlad Tenev, Kraken co-CEO Arjun Sethi, and Intercontinental Exchange CEO Jeffrey Sprecher. Additionally, SEC Chair Paul Atkins, CFTC Chair Michael Selig, and White House crypto adviser Patrick Witt were in attendance.

Trump’s main message was the need for Congress to establish a permanent regulatory framework for the crypto industry. The Clarity Act, if passed, would define a statutory division between securities and commodities and clarify the roles of the SEC and CFTC.

This push comes after the SEC proposed a new crypto framework on Tuesday to facilitate token issuance and capital raising for select companies by exempting them from existing securities regulations. However, comprehensive legislation remains stalled in the Senate.

For the prediction market sector, distinguishing between crypto and event contract regulation is increasingly crucial. While these sectors are often discussed together as part of the broader financial technology agenda, prediction markets face a separate challenge regarding whether contracts related to sports, politics, and other events should be regulated by federal derivatives rules or state gambling laws.

The timing of the White House event places additional focus on Thursday’s CFTC Innovation Advisory Committee meeting.

CFTC Chair Michael Selig has emphasized the committee’s role in moving away from what he termed the previous administration’s “enforcement-centric regulation” approach. He argues that emerging technologies like blockchain, artificial intelligence, and prediction markets require a regulatory environment conducive to innovation in the U.S.

For operators in the prediction market industry, the CFTC’s stance could have significant implications. The sector is increasingly seeking to establish event contracts as financial products subject to federal commodities regulation, while facing opposition from state regulators and traditional gambling industry stakeholders.

Analysts interpret the White House’s decision to exclude prediction markets from its crypto-focused meeting as not necessarily indicating a shift in Trump’s overall stance. However, it underscores that prediction markets remain a distinct regulatory concern, even as the administration actively works to position the U.S. as an emerging financial technology hub.