Will the Clarity Act Fill the Regulatory Gap in U.S. CFTC Authority?

U.S. lawmakers are debating the Clarity Act, which could expand the Commodity Futures Trading Commission's (CFTC) oversight authority over prediction markets. Legal experts highlighted regulatory gaps and conflicts between federal and state oversight during a hearing, emphasizing the CFTC's potential to regulate growing prediction market platforms like Calci and Polymarket. The debate intersects with ongoing disputes over jurisdiction, as CFTC Chair Michael Celik claims event contracts on these platforms fall under CFTC-regulated swaps. However, state governments are challenging this authority, leading to legal tensions and potential Supreme Court intervention. Legislative momentum is accelerating, with Republicans pushing for a vote before the August recess, though details on addressing regulatory gaps and ethical concerns remain undisclosed.