Woofun AI reports that the U.S. House Subcommittee on Commodity Markets held a hearing regarding CFTC regulation of prediction markets. Carl Kennedy of Katten Muchin Rosenman noted that the CFTC may lack sufficient resources to enforce rules on platforms such as Kalshi and Polymarket. He suggested the Senate-considered CLARITY Act could grant the agency greater authority over digital assets and prediction market growth.

CFTC Chairman Michael Selig maintains that the agency holds exclusive jurisdiction over these entities, classifying event contracts as swaps. Several U.S. states have sued Kalshi and Polymarket over sports betting disputes, with cases potentially reaching the U.S. Supreme Court.