CLARITY Act Could Help CFTC Tackle Prediction Markets
2026-07-21 21:44
Odaily Planet Daily News: The Subcommittee on Commodity Markets, Digital Assets, and Rural Development, under the U.S. House Committee on Agriculture, held a hearing on how the Commodity Futures Trading Commission (CFTC) should regulate prediction markets. Carl Kennedy, a partner at Katten Muchin Rosenman, stated that the CFTC may lack sufficient staffing to adequately handle regulation and enforcement for platforms like Kalshi and Polymarket.
Kennedy believes that the CLARITY Act, currently under consideration in the Senate, could grant the CFTC greater authority, both for digital assets and for addressing the growth of prediction markets. He stated that if the CFTC is to handle new asset classes such as cash markets and crypto assets, it will require more resources.
CFTC Chairman Michael Selig, since being confirmed by the Senate in December, has argued that the agency has exclusive jurisdiction over related companies and believes that event contracts on these platforms fall under the CFTC's jurisdiction as swaps. Several U.S. states have sued Kalshi and Polymarket over sports betting-related disputes, and these cases could ultimately reach the U.S. Supreme Court.
Kennedy believes that the CLARITY Act, currently under consideration in the Senate, could grant the CFTC greater authority, both for digital assets and for addressing the growth of prediction markets. He stated that if the CFTC is to handle new asset classes such as cash markets and crypto assets, it will require more resources.
CFTC Chairman Michael Selig, since being confirmed by the Senate in December, has argued that the agency has exclusive jurisdiction over related companies and believes that event contracts on these platforms fall under the CFTC's jurisdiction as swaps. Several U.S. states have sued Kalshi and Polymarket over sports betting-related disputes, and these cases could ultimately reach the U.S. Supreme Court.
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