CLARITY Act could give CFTC more authority over prediction markets, lawyer says

A lawyer testifying before a House subcommittee hearing said the CLARITY Act could give the US Commodity Futures Trading Commission the authority it needs to address the “explosive growth of prediction markets.” The remarks framed the bill as a potential way to clarify the agency’s role in overseeing the sector.

The development matters because prediction markets have become a growing area of interest in crypto and broader financial markets, and their regulatory treatment remains an open question. Clearer authority for the CFTC could affect how these markets are supervised and how companies operating in the space think about compliance.

The testimony also highlights how lawmakers and regulators continue to work through which agencies should oversee products that sit between finance, derivatives and crypto-linked activity. That uncertainty has made prediction markets a focus of policy discussion as the industry expands.

The source did not provide additional details on the hearing outcome or on any immediate changes to current oversight. For now, the lawyer’s comments suggest the CLARITY Act is being viewed as one possible path toward more defined federal supervision.