The Subcommittee on Commodity Markets, Digital Assets, and Rural Development under the U.S. House Agriculture Committee held a hearing on how the CFTC regulates the prediction market. Carl Kennedy, partner of Katten Muchin Rosenman, stated that the CFTC is understaffed and unable to handle the supervision and enforcement of platforms such as Kalshi and Polymarket. Kennedy believes that the CLARITY Act may give the CFTC more authority and resources to address forecasted market growth. CFTC Chairman Michael Selig advocates that the agency has exclusive jurisdiction over the relevant companies and believes that the event contracts on the platform belong to swaps. Some US states have sued Kalshi and Polymarket over sports betting related disputes, and the related cases may enter the US Supreme Court.
