CLARITY Act may help CFTC address prediction markets
2026-07-21 21:44
Odaily News The Subcommittee on Commodity Markets, Digital Assets, and Rural Development under the U.S. House Agriculture Committee 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 be understaffed to adequately handle the oversight and enforcement of 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 in addressing the growth of prediction markets. He noted 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 consistently argued that the agency has exclusive jurisdiction over related companies, contending that event contracts on these platforms fall under the CFTC’s purview 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 in addressing the growth of prediction markets. He noted 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 consistently argued that the agency has exclusive jurisdiction over related companies, contending that event contracts on these platforms fall under the CFTC’s purview 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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