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Congress is moving forward with the Digital Asset Market Clarity Act, a crypto market structure bill that could have major consequences for U.S. prediction markets, including platforms such as Kalshi and Polymarket.
According to Gaming America, the bill already cleared the Senate Banking Committee earlier in 2026 and passed the House. It later stalled over ethics provisions tied to whether federal officials could profit from digital assets while in office. The White House agreed to ethics language on July 20 and sent it to Senate Republicans, reviving the measure’s path forward.
For prediction markets, the biggest issue is oversight. The CLARITY Act would place most crypto regulation with the Commodity Futures Trading Commission, while leaving securities-like tokens with the SEC. The bill would also protect customer funds in bankruptcy, create safe harbors for DeFi developers, and add insider-trading safeguards for digital asset markets.
That matters because the CFTC is already at the center of the legal and regulatory fight over prediction markets. Gaming America reported that former CFTC lawyer Carl Kennedy testified the agency may be too short-staffed to handle both its current prediction market responsibilities and the broader duties it would receive under the bill.
Another closely watched issue is a possible amendment sought by tribal gaming representatives that would ban sports prediction market contracts. David Bean, chairman of the Indian Gaming Association, testified on behalf of tribal interests. If that language were added, the article says it could effectively end the current legal fight over sports event contracts and moot pending court cases.
The bill’s Senate path is still uncertain. It needs 60 votes to advance, meaning at least seven Democrats would need to join Republicans. Polymarket odds of the bill passing in 2026 were about 43% as of the article, up from 32% the previous week.
For readers tracking prediction markets, the next questions are whether the Senate acts before the August recess and whether any final version includes the proposed sports contract ban. A separate deadline is also approaching: July 27 is the cutoff for comments on the CFTC’s notice of proposed rulemaking on event contracts.
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Source: As reported by gamingamerica.com.
