Woofun AI reports that Carl Kennedy of Katten Muchin Rosenman testified before the U.S. House Agriculture Subcommittee that the CLARITY Act could provide the Commodity Futures Trading Commission with necessary regulatory authority over prediction platforms like Kalshi and Polymarket. Kennedy highlighted current CFTC staffing constraints and the "explosive growth" of the sector as key drivers for legislative action.

CFTC Chairman Michael Selig maintains that event contracts constitute swaps under the Commodity Exchange Act, falling under exclusive federal jurisdiction. This position has triggered lawsuits from multiple states against prediction market operators. Republican lawmakers plan to advance a vote on the CLARITY Act before the August recess, while the American Gaming Association has requested explicit prohibitions on sports and casino-related event contracts.