Blockchain advocacy organization The Digital Chamber has created a new initiative aimed at advancing prediction markets and securing clearer regulatory guidance for the sector in the United States.
In a post on X on Tuesday, The Digital Chamber announced the launch of its Prediction Markets Working Group, describing it as part of a multi-year effort to bring greater clarity to what it characterized as a frequently misunderstood corner of the financial system.
As an initial step, the group said it sent a letter to Commodity Futures Trading Commission Chair Mike Selig, commending his push to preserve federal oversight of prediction markets and urging an end to what it described as regulation through enforcement actions.
The organization said it welcomed Selig’s recent remarks indicating that CFTC staff intend to develop tailored rulemaking and guidance for the fast-growing prediction markets segment within financial and digital asset industries. It added that companies operating in the space have long faced regulatory uncertainty, including unclear jurisdictional boundaries between federal and state authorities.
Looking ahead, The Digital Chamber said the working group will continue engaging with the Commodity Futures Trading Commission, draft policy principles, submit formal recommendations, publish research and expand a coalition of industry participants. It also plans to file amicus, or friend-of-the-court, briefs in relevant cases to argue for what it describes as the CFTC’s long-standing and exclusive authority over prediction markets.
Prediction markets face mounting legal battles
The initiative comes as prediction market platforms face growing pressure from state regulators. Kalshi, one of the sector’s leading firms, was served with a civil enforcement action by the Nevada Gaming Control Board on Tuesday. The regulator is seeking an injunction to block Kalshi from offering what it called “unlicensed wagering” in the state.
Kalshi and rival Polymarket have both encountered resistance from multiple state authorities attempting to halt offerings such as sports-related contracts, arguing the products amount to unlicensed gambling.
Last week, Polymarket filed a federal lawsuit against the state of Massachusetts in an effort to preempt potential enforcement action, contending that primary oversight of prediction markets rests with the CFTC rather than state regulators.
CFTC Chair Mike Selig has recently echoed that view, urging states to respect the agency’s jurisdiction or risk legal confrontation. In a video posted to X on Monday, Selig stressed that prediction markets are not new and have been regulated by the CFTC for more than 20 years.
However, Spencer Cox, governor of Utah, pushed back on Tuesday, saying he would welcome a legal clash with the CFTC. Cox characterized prediction markets as a form of gambling that is harming Americans and questioned whether the agency truly has authority over contracts tied to events such as professional basketball statistics.
