The Clarity Act may help the CFTC deal with prediction markets.

Odaily Planet Daily reports that the U.S. House Agriculture Committee's Subcommittee on Commodity Markets, Digital Assets, and Rural Development 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 and unable to adequately handle the regulation and enforcement of platforms like Kalshi and Polymarket. Kennedy believes the Senate's CLARITY Act, currently under consideration, could grant the CFTC more authority, both for digital assets and for addressing the growth of prediction markets. He stated that the CFTC needs more resources to handle new asset classes such as the cash market and crypto assets. CFTC Chairman Michael Selig, since his Senate confirmation in December, has argued that the agency has exclusive jurisdiction over the companies involved and considers event contracts on these platforms to fall under the CFTC's jurisdiction as swaps. Several U.S. states have already filed lawsuits against Kalshi and Polymarket in sports betting disputes, and these cases may ultimately reach the U.S. Supreme Court.