![\"CLARITY](\"https:\/\/s3-images.ctmedia.io\/media\/article-covers\/hi-prediction-market-cftc-rule.jpg\")
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According to one lawyer testifying before a House subcommittee hearing, the CLARITY Act could grant the CFTC the authority it needs to address the \u201cexplosive growth of prediction markets.\u201d<\/p>\n
Lawmakers in the US House Committee on Agriculture\u2019s Subcommittee on Commodity Markets, Digital Assets, and Rural Development held a hearing on how the Commodity Futures Trading Commission (CFTC) could address oversight of prediction market companies, including discussions of pending crypto market structure legislation.<\/p>\n
In a Tuesday hearing on \u201cExamining Customer Protections and Market Integrity in Sports Event Prediction Markets,\u201d Carl Kennedy, a partner at New York law firm Katten Muchin Rosenman, said<\/a> that the CFTC was likely too \u201cshort-staffed\u201d to fully deal with the regulation and enforcement of prediction market platforms like Kalshi and Polymarket. According to the lawyer, the Digital Asset Market Clarity (CLARITY) Act under consideration in the US Senate could grant the commodities regulator additional authority not only to address digital assets but also the \u201cexplosive growth of prediction markets.\u201d<\/p>\n \u201cI do believe that with additional resources \u2014 they\u2019re about to perhaps receive additional authorities under the CLARITY Act \u2014 with additional resources to address these new asset classes in the cash markets and crypto, as well as to deal with the explosive growth of prediction markets, I think that the CFTC certainly should receive additional resources,\u201d said Kennedy.<\/p>\n